Answer:
Bindy Crawford
1. Tabular Analysis of the August Transactions:
Cash Accounts Supplies Equipment Accounts Common Retained
Receivable Payable Earnings
7/31 $4,600 $7,400 $730 $9,900 $9,100 $11,700 $1,830
8/1 +1,200 -1,200
8/4 -2,770 -2,770
8/9 +3,510 +2,540 +6,050
8/15 -510 +4,180 +3,670
8/19 -2,480 -2,480
8/23 -670 -670
8/26 +5,700 +5,700
8/31 -370 -370
8/31 $8,210 $8,740 $730 $14,080 $15,700 $11,700 $4,360
2. Income Statement for the month of August
Service revenue $6,050
Salaries expense $1,390
Rent expense 760
Advertising expenses 330
Utility expenses 370 2,850
Net income $3,200
3. Retained Earnings Statement for the month of August
Retained earnings, July 31 $1,830
Net income 3,200
Dividends (670)
Retained earnings, Aug. 31 $4,360
4. Classified Balance Sheet as of August 31
Assets
Current Assets:
Cash $8,210
Accounts receivable 8,740
Supplies 730 $17,680
Long-term Assets:
Equipment $14,080
Total assets $31,760
Liabilities and Equity
Current liabilities:
Accounts Payable 10,000
Notes Payable 5,700 $15,700
Equity:
Common stock 11,700
Retained earnings 4,360 $16,060
Total liabilities and equity $31,760
Explanation:
a) Data and Analysis:
8/1 Cash $1,200 Accounts receivable $1,200
8/4 Accounts payable $2,770 Cash $2,770
8/9 Accounts receivable $2,540, Cash $3,510 Service revenue $6,050
8/15 Equipment $4,180 Cash $510 Accounts payable $3,670
8/19 Salaries expense $1,390, Rent expense $760, Advertising expenses $330 Cash $6,150
8/23 Cash dividend $670 Cash $670
8/26 Cash $5,700 Note payable (American Federal Bank) $5,700
8/31 Utility expenses $370 Cash $370
Tabular Analysis of the August Transactions:
Cash Accounts Supplies Equipment Accounts Common Retained
Receivable Payable Earnings
7/31 $4,600 $7,400 $730 $9,900 $9,100 $11,700 $1,830
8/1 +1,200 -1,200
8/4 -2,770 -2,770
8/9 +3,510 +2,540 +6,050
8/15 -510 +4,180 +3,670
8/19 -2,480 -2,480
8/23 -670 -670
8/26 +5,700 +5,700
8/31 -370 -370
8/31 $8,210 $8,740 $730 $14,080 $15,700 $11,700 $4,360
