(a) Nimbus Flying School Income Statement For the month of May, 2015
Particulars Amount ( In $ )
Service Revenue 6,800
Less : Advertising Expense ( 500 )
Less : Rent Expense ( 900 )
Less : Maintenance Expense ( 350 )
Less : Gasoline Expense ( 2,500 )
Less : Utilities Expense ( 400 )
Net Income 2,150
Nimbus Flying School Statement of Retained Earnings For the month of May, 2015
Particulars Amount ( In $ )
Net Income from Income Statement 2,150
Less : Dividends Paid ( 500 )
Closing Balance of Retained Earnings 1,650
Nimbus Flying School Balance Sheet As on 31 May, 2015
Assets Amount ( In $ )
Cash 4,650
Equipment 64,000
Accounts Receivable 7,400
Total 76,050
Liabilities Amount ( In $ )
Accounts Payable 1,400
Notes Payable 28,000
Retained Earnings 1,650
Share Capital 45,000
Total 76,050
Point of Explanation
In Liabilities side of Balance Sheet Share Capital of $ 45,000 is shown because it is the same amount with which the business was started on May 1, 2015 with investment in Cash for amount of $ 45,000
(b) Nimbus Flying School Income Statement For the month of May, 2015
Particulars Amount ( In $ )
Service Revenue [ 6,800 + 900 ] 7,700
Less : Advetising Expense ( 500 )
Less : Rent Expense ( 900 )
Less : Maintenance and Repairs Expense ( 350 )
Less : Gasoline Expense [ 2,500 + 1,500 ] ( 4,000 )
Less : Utilities Expense ( 400 )
Net Income 1,550
Nimbus Flying School Statement of Retained Earnings For the month of May, 2015
Particulars Amount ( In $ )
Net Income from Income Statement 1,550
Less : Dividends Paid ( 500 )
Closing Balance of Retained Earnings 1,050
