On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the…

On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October income statement for the business.Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000Cash withdrawals by owner . . . . . . . . . $ 3,360Accounts receivable . . . . . . . . . . . . . . . . 13,000Consulting fees earned . . . . . . . . . . . . . 15,000Office supplies . . . . . . . . . . . . . . . . . . . . 4,250Rent expense . . . . . . . . . . . . . . . . . . . . . . 2,550Land . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000Salaries expense . . . . . . . . . . . . . . . . . . . 6,000Office equipment . . . . . . . . . . . . . . . . . 28,000Telephone expense . . . . . . . . . . . . . . . . . . . 660Accounts payable . . . . . . . . . . . . . . . . . . . 7,500Miscellaneous expenses . . . . . . . . . . . . . . . 680Owner investments . . . . . . . . . . . . . . . . . 74,000View Solution:
On October 1 Natalie King organized Real Solutions a new