Income Statement of Baker and Co. Services Provided $98000 Interest($13000*6%*4/12) $260 Total Income $98260 Salary Expenses $34000 Uncollectible Account Expense $980 Net Income $63280 Dividend $2000 Transferred to retained earnings $61280 Balance Sheet of Baker & Co Liabilities Assets Owners equity $190000 Accounts Receivables $13020 Retained Earnings $61280 Investment(with Interest Accrued) $13260 Cash $225000 Total $251280 Total $251280 Cash A/c Owners Equity $190000 Investment $13000 Accounts Receivables $84000 Salary $34000 Dividend $2000 Balance $225000 $274000 $274000 Cash Flow Statement Cash from Operating Activities Cash generated from operations $63280 Less Dividend $2000 Less Interest income $260 Less Increase in Accounts Receivables 13020 $48000 Cash From Investing Activities ($13000) Investments ($13000) Cash From Financing Activities Proceeds from Shares Issued $190000 $190000 Cash and Cash equivalents at the beginning of the year 0 Cash and Cash equivalents at the Ending of the year $225000 Statement of Changes of Share holders Equity Share Holders Equity $190000 Add Retained Earnings $61280 Share Holders Equity as on 31-12-2010 $251280 Income Statement of Baker and Co. Services Provided $98000 Interest($13000*6%*4/12) $260 Total Income $98260 Salary Expenses $34000 Uncollectible Account Expense $980 Net Income $63280 Dividend $2000 Transferred to retained earnings $61280 Solution Income Statement of Baker and Co. Services Provided $98000 Interest($13000*6%*4/12) $260 Total Income $98260 Salary Expenses $34000 Uncollectible Account Expense $980 Net Income $63280 Dividend $2000 Transferred to retained earnings $61280 Balance Sheet of Baker & Co Liabilities Assets Owners equity $190000 Accounts Receivables $13020 Retained Earnings $61280 Investment(with Interest Accrued) $13260 Cash $225000 Total $251280 Total $251280 Cash A/c Owners Equity $190000 Investment $13000 Accounts Receivables $84000 Salary $34000 Dividend $2000 Balance $225000 $274000 $274000 Cash Flow Statement Cash from Operating Activities Cash generated from operations $63280 Less Dividend $2000 Less Interest income $260 Less Increase in Accounts Receivables 13020 $48000 Cash From Investing Activities ($13000) Investments ($13000) Cash From Financing Activities Proceeds from Shares Issued $190000 $190000 Cash and Cash equivalents at the beginning of the year 0 Cash and Cash equivalents at the Ending of the year $225000 Statement of Changes of Share holders Equity Share Holders Equity $190000 Add Retained Earnings $61280 Share Holders Equity as on 31-12-2010 $251280 Income Statement of Baker and Co. Services Provided $98000 Interest($13000*6%*4/12) $260 Total Income $98260 Salary Expenses $34000 Uncollectible Account Expense $980 Net Income $63280 Dividend $2000 Transferred to retained earnings $61280.

1. Income Statement of Baker and Co.
Services Provided
$98000
Interest($13000*6%*4/12)
$260
Total Income
$98260
Salary Expenses
$34000
Uncollectible Account Expense
$980
Net Income
$63280
Dividend
$2000
Transferred to retained earnings
$61280
Balance Sheet of Baker & Co
Liabilities
Assets
Owners equity
$190000
Accounts Receivables
$13020
Retained Earnings
$61280
Investment(with Interest Accrued)
$13260
Cash
$225000
Total
$251280
Total
$251280
Cash A/c

2. Owners Equity
$190000
Investment
$13000
Accounts Receivables
$84000
Salary
$34000
Dividend
$2000
Balance
$225000
$274000
$274000
Cash Flow Statement
Cash from Operating Activities
Cash generated from operations
$63280
Less Dividend
$2000
Less Interest income
$260
Less Increase in Accounts Receivables
13020
$48000
Cash From Investing Activities
($13000)
Investments
($13000)
Cash From Financing Activities
Proceeds from Shares Issued
$190000
$190000
Cash and Cash equivalents at the beginning of the year
0
Cash and Cash equivalents at the Ending of the year

3. $225000
Statement of Changes of Share holders Equity
Share Holders Equity
$190000
Add Retained Earnings
$61280
Share Holders Equity as on 31-12-2010
$251280
Income Statement of Baker and Co.
Services Provided
$98000
Interest($13000*6%*4/12)
$260
Total Income
$98260
Salary Expenses
$34000
Uncollectible Account Expense
$980
Net Income
$63280
Dividend
$2000
Transferred to retained earnings
$61280
Solution
Income Statement of Baker and Co.
Services Provided
$98000
Interest($13000*6%*4/12)
$260
Total Income
$98260
Salary Expenses

4. $34000
Uncollectible Account Expense
$980
Net Income
$63280
Dividend
$2000
Transferred to retained earnings
$61280
Balance Sheet of Baker & Co
Liabilities
Assets
Owners equity
$190000
Accounts Receivables
$13020
Retained Earnings
$61280
Investment(with Interest Accrued)
$13260
Cash
$225000
Total
$251280
Total
$251280
Cash A/c
Owners Equity
$190000
Investment
$13000
Accounts Receivables
$84000
Salary
$34000
Dividend

5. $2000
Balance
$225000
$274000
$274000
Cash Flow Statement
Cash from Operating Activities
Cash generated from operations
$63280
Less Dividend
$2000
Less Interest income
$260
Less Increase in Accounts Receivables
13020
$48000
Cash From Investing Activities
($13000)
Investments
($13000)
Cash From Financing Activities
Proceeds from Shares Issued
$190000
$190000
Cash and Cash equivalents at the beginning of the year
0
Cash and Cash equivalents at the Ending of the year
$225000
Statement of Changes of Share holders Equity
Share Holders Equity
$190000
Add Retained Earnings
$61280
Share Holders Equity as on 31-12-2010
$251280
Income Statement of Baker and Co.

6. Services Provided
$98000
Interest($13000*6%*4/12)
$260
Total Income
$98260
Salary Expenses
$34000
Uncollectible Account Expense
$980
Net Income
$63280
Dividend
$2000
Transferred to retained earnings
$61280