Question

, 16, 17) Oe Company expenenced the folowing events duning its first-year operations t Acquaired 572000 canh from the issue of common stock 2 Bomowed $26,000 from the Fest Cty Bank. 1 Eaned $59000 of cash revenue 4 Incursed $43000 of cash expenses 5 Paid a 57000 cash dvidend Pad S43 D00 to prchase land. Required a. ldeny e events that will afect the income stanement. (Select all thet apply Event Prepare an Income satement shat shows the resulits of Year t operations
The second picture came out upside down and I dont know how to fix it.

Answer 1

Requirement 1

Solution

	Effect income statement
Event #1	No
Event #2	No
Event #3	Yes
Event #4	Yes
Event #5	No
Event #6	No

Requirement 2

Income statement
Revenues	$   59,000.00
Less: Expenses	$   43,000.00
Operating income	$   16,000.00

Requirement 3

Correct answer--- Cash

.

When revenue is collected in cash then retained earnings as well as cash balance increases. Cash is part of asset and cash is places at the left side of accounting equation.