I. Bright Corporation's accounts and balance sheets as at 31 May 2022 are shown below. Retained Earnings balance sheet is as of May 1, 2022.
Accounts with Balances:
Salaries Payable $17,000
Depreciation Expense 50,000
Supplies Expense 8,000
Dividends 280,000
Cost of Goods Sold 780,000
Common Stock 300,000
Equipment-net 200,000
Salaries Expense 115,000
Notes Payable-due 2025 40,000
Supplies 10,000
Insurance Expense 1,500
Accounts Payable 23,000
Prepaid Insurance 12,000
Sales-net 1,300,000
Interest Payable 500
Retained Earnings 400,000
Cash 14,800
Buildings-net 400,000
Advertising Expense 45,000
Additional Paid In Capital 172,800
Accounts Receivable-net 15,000
Interest Expense 3,000
Land 200,000
Tax rate 40%
Required:
1. Prepare an income statement and a retained earnings statement for Bright Corporation for the month ended 31 May 2022.
2. Prepare a balance sheet for Bright Corporation by 31 May 2022.
