Jennifer Lopez Cheesecake Corporation was formed on July 1, 2004. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,900, Supplies $500, Office Equipment

$5,000, Accounts Payable $4,200, Common Stock $7,500, and Retained Earnings $700. During LO13 August the following transactions occurred.

1. Collected $1,600 of accounts receivable.

2. Paid $2,700 cash on accounts payable.

3. Earned revenues of $8,400, of which $3,000 is collected in cash and the balance is due in September.

4. Purchased additional office equipment for $1,000, paying $250 in cash and the balance on account.

5. Paid salaries $1,500, rent for August $1,100, and advertising expenses $350.

6. Paid dividends of $750.

7. Received $1,000 from Standard Federal Bank—money borrowed on a note payable.

8. Incurred utility expenses for month on account $300.

Instructions

(a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column heading should be as follows: Cash  Accounts Receivable  Supplies  Office Equipment
Notes Payable  Accounts Payable  Common Stock  Retained Earnings.

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

FINANCIAL REPORTING PROBLEM: Hilton Hotels Corporation