The tabular analysis of transactions for Wolfe Company is presented in E3.4.

Instructions

Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31, 2025.

Data from Exercises 3.4

A tabular analysis of the transactions made during August 2025 by Wolfe Company during its first month of operations is shown as follows. Each increase and decrease in stockholders' equity is explained.

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Cash 1. +$20,000 2. -1,000 -750 +4,100 -1,500 -2,000 -800 +450 -3,000 3. 4. 5. 6. 7. 8. 9. 10. Assets + A/R + Supp. + Equip. = +$5,400 -450 +$750 = Liabilities + Accounts Common Payable + Stock + +$20,000 +$5,000 +$4,000 -1,500 +300 Stockholders' Equity Rev. Retained Earnings - Exp. +$9,500 -$ 800 -3,000 -300 - Div. -$2,000 Serv. Rev. Rent Exp. Salar. Exp. Util. Exp.