Assignment #1

Problem #1

The following amounts were taken from the accounting records of Russell Services, Inc. as of Dec 31,

2009. Russell Services began its operations on January 1, 2009.

1. Interest Expense $ 2,000

2. Land $ 98,000

3. Miscellaneous Expense $ 8,000

4. Taxes Expense $ 22,000

5. Rent Expense $ 28,000

6. Fees Earned $300,000

7. Salaries Expense $ 87,000

8. Dividends $ 13,000

9. Cash $ 62,000

10. Notes Payable $ 30,000

11. Capital Stock $ 30,000

12. Utilities Expense $ 40,000

Instructions:

1. Prepare an income statement for the year ending December 31, 2009.

2. Prepare a retained earnings statement for the year ending December 31, 2009.

3. Prepare a balance sheet as of December 31, 2009.

4. Prepare a statement of cash flows for the year ending December 31, 2009.

Please prepare the above documents.