An analysis of transactions for Foley & Co. was presented in E18. Assume that August is the

An analysis of transactions for Foley & Co. was presented in E1–8. Assume that August is the company’s first month of business.

In E1–8, An analysis of the transactions made by Foley & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholders’ equity is explained.

Instructions
Prepare an income statement and a retained earnings statement for August and a balance sheet at August 31,2015.

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Assets Liabilities+Stockholders' Equity Accounts Common AccountsSuppliesEquipmentPavable Stock Receivable Retained Earnin Rev Cash + pDiv . +$15,000 2. 2,000 3. 750 4. +4,900 +4,500 5. 1,500 6. 2,000 7.850 8. +450 9 3,900 10. +$15,000 $5,000 +$3,000 +$750 +$9,400 Seivice Revenue -1,500 -$2,000 -$850 Rent Expense -450 -3,900 -500 Sal./Wages Expense Utilities Expense +500