P1-1A Barone’s Repair Inc. was started on May 1. A summary of May transactions is pre¬

sented below.

1. Stockholders invested $10,000 cash to start the repair company.

2. Purchased equipment for $5,000 cash.

3. Paid $400 cash for May office rent.

4. Paid $500 cash for supplies.

5. Incurred $250 of advertising costs in the Beacon News on account.

6. Received $5,100 in cash from customers for repair service.

7. Paid dividends of $1,000 cash.

8. Paid part-time employee salaries $2,000.

9. Paid utility bills $140.

10. Provided repair service on account to customers $750.

11. Collected cash of $120 for services billed in transaction (10).

Instructions

(a) Prepare a tabular analysis of the transactions, using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings. Revenue is called Service Revenue.

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