Ron Smith opens an apartment-locator business near a college campus. The company will be named Campus Apartment Locators. During the first month of operations, July 2024, the business completes the following transactions:
a. Receives a $35,000 contribution from Ron Smith and issues common stock to Ron Smith.
b. Purchases $350 of office supplies on account.
c. Pays cash of $30,000 to acquire a lot next to campus.
d. Locates apartments for clients and receives cash of $1,900.
e. Pays $100 on the accounts payable the business created in Transaction (b).
f. Pays cash expenses for office rent, $400, and utilities, $100.
g. Pays cash dividends of $1,200 to stockholders.

Requirements
1. Analyze the preceding transactions in terms of their effects on the accounting
equation of Campus Apartment Locators. Use Exhibit F:1-6 as a guide. 

F:1-6 Exhibit

2. Prepare the income statement, statement of retained earnings, balance sheet, and statement
of cash flows of the business after recording the transactions.
3. Calculate the return on assets (ROA).

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1. Received $30,000 cash and issued common stock to Sheena Bright, stockholder 2. Paid $20,000 cash for land 3. Bought $500 of office supplies on account 4. Received $5,500 cash from clients for service revenue earned 5. Performed services for clients on account, $3,000 6. Paid cash expenses: office rent, $2,000; employee salaries, $1,200 7. Paid $300 on the accounts payable created in Transaction 3 8. Collected $2,000 on the accounts receivable created in Transaction 5 9. Paid cash dividends of $5,000 to stockholder, Sheena Bright Cash + Accounts + Office + Land Receivable Supplies (1) +30,000 (2) -20,000 Bal. $10,000 (3) Bal. $10,000 ASSETS (4) +5,500 Bal. $15,500 (5) Bal. $15,500 + + +3,000 $3,000 + + $500 + $20,000 (6) -3,200 Bal. $12,300 + $3,000 + (7) -300 Bal. $12,000+ $3,000 + (8) +2,000 -2,000 +20,000 + $20,000 +500 $500 + $20,000 $1,000 + $30,500 $500 + $20,000 $500 + $20,000 Bal. $14,000+ $1,000 + $500 + $20,000 (9) -5,000 Bal. $9,000 + $500 + $20,000 $500 + $20,000 LIABILITIES + Accounts + Payable +500 $500 $500 $500 $500 -300 $200 $200 $200 + + + Contributed Capital Common Stock +30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 + $30,000 + $30,000 - + - Dividends + Service Revenue + + + EQUITY + Retained Earnings +5,500 $5,500 +3,000 $8,500 + $8,500 $8,500 $30,500 $8,500 -5,000 $5,000 + $8,500 - - Rent Expense -2,000 $2,000 $2,000 $2,000 $2,000 - - - Salaries Expense -1,200 $1,200 $1,200 $1,200 $1,200