On October 1, Keisha King organized Real Answers, a new consulting firm

On October 1, Keisha King organized Real Answers, a new consulting firm. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October income statement for the business.

Cash . . . . . . . . . . . . . . . . . . $11,500    Cash dividends . . . . . . . . . . . . . . $ 2,000

Accounts receivable . . . . . . . 12,000     Consulting fees earned . . . . . . . . 14,000

Office supplies . . . . . . . . . . . 24,437     Rent expense . . . . . . . . . . . . . . . 2,520

Land . . . . . . . . . . . . . . . . . . . 46,000   Salaries expense . . . . . . . . . . . . . 5,600

Office equipment . . . . . . . . . 18,000     Telephone expense . . . . . . . . . . . 760

Accounts payable . . . . . . . . . 25,037    Miscellaneous expenses . . . . . . . 580

Common stock . . . . . . . . . . . 84,360

Check: Net income, $4,540

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