Bethel Corp. is a retail company and had the following transactions during March, 2007, its first month of operations:
March 1 - The owner invested $12,000 into the business.
March 1 - The company bought inventory for cash of $7,500.
March 7 - This month's rent was paid in cash totaling $1,500.
March 12 - Advertising was incurred during
March for $540. The bill will be paid in April.
March 13 - The company sold merchandise for $9,000.
Cash collected from the customers for these goods was $7,000, the remainder will be collected next month. March 13 - The cost of the merchandise sold in the previous transaction was $5,000.
March 31 - During the month the employees were paid $1,000 in cash and an additional $300 of wages was owed to them, but had not been paid.
Required: Using the above transactions prepare the following statements: A. Income Statement (10 points) B. Balance Sheet (5 points)
