Mark Mader created a corporation providing legal services, Mark Mader Inc., on prepare an income statement, July 1, 2007. On July 31 the balance sheet showed: Cash $4,000; Accounts Receivable retained earnings statement, $2,500; Supplies $500; Office Equipment $5,000; Accounts Payable $4,200; Common Stock SS ;B e sheet. $6,200; and Retained Earnings $1,600. During August the following transactions occurred.

[6LS] 1. Collected $1,500 of accounts receivable due from customers.

ee 2. Paid $2,700 cash for accounts payable due. 3. Earned revenue of $6,400, of which $3,000 is collected in cash and the balance is due in September. 4. Purchased additional office equipment for $2,000, paying $400 in cash and the balance on account. 5. Paid salaries $1,400, rent for August $900, and advertising expenses $350. 6. Declared and paid a cash dividend of $700. 7. Received $2,000 from Standard Federal Bank; the money was borrowed on a 4-month note payable. 8. Incurred utility expenses for the month on account $450.

(a) Cash $4,050 Instructions Ret. earnings $4,200

(a) Prepare a tabular analysis of the August transactions beginning with J uly 31 balances.

The column heading should be: Cash + Accounts Receivable + Supplies + Office Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings.

Include margin explanations for any changes in Retained Earnings.

(b) Net income $3,300

(b) Prepare an income statement for August, a retained earnings statement for August, and a classified balance sheet at August 31.

Journalize a series of