Rabbit Ears Repair Shop Inc. was started on May 1. Here is a summary of the May transactions:

1. Stockholders invested $16,000 cash in the company in exchange for common stock.

2. Purchased equipment for $5,000 cash.

Paid $400 cash for May office rent.
Paid $500 cash for supplies.
Incurred $550 of advertising costs in the Beacon News on account.
Received $4,100 in cash from customers for repair service.
Declared and paid a $500 cash dividend.
Paid part-time employee salaries, $1,200.
Paid utility bills, $140.
Provided repair service on account to customers, $400.
Cae FS Collected cash of $120 for services billed in transaction (10).
Instructions

(a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings. Revenue is called Service Revenue. Include margin explanations for any changes in Retained Earnings.

(b) From an analysis of the column Retained Earnings, compute the net income or net loss for May.