Stockholders’ Equity
$
Total liabilities and stockholders’ equity $ t
Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 15, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 208
PIERCE INDUSTRIES
Income Statement
For the Month Ended August 31, 2022
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Revenues
Service revenue ............................................................................ $25,700
Expenses
Salaries and wages expense $12,000
Rent expense 3,400
Insurance expense 1,200
Total expenses ........................................................................................ 16,600
Net income ............................................................................. $ 9,100
Solution 208 (Cont.)
PIERCE INDUSTRIES
Retained Earnings Statement
For the Month Ended August 31, 2022