Collins Computer Timeshare entered into the following transactions during May 2025.

1. Purchased computers for R\($20,000\) from Digital Equipment on account.

2. Paid R\($4,000\) cash for May rent on storage space.

3. Received R\($17,000\) cash from customers for contracts billed in April.

4. Performed computer services for Viking Construction for R\($4,000\) cash.
5. Paid Tri-State Power R\($11,000\) cash for energy usage in May.
6. Shareholders invested an additional R\($29,000\) in the business in exchange for ordinary shares.
7. Paid Digital Equipment for the computers purchased in (1) above.
8. Incurred advertising expense for May of R\($1,200\) on account.
Instructions Indicate with the appropriate letter whether each of the transactions above results in:

a. An increase in assets and a decrease in assets.

b. An increase in assets and an increase in equity.

c. An increase in assets and an increase in liabilities.

d. A decrease in assets and a decrease in equity.

e. A decrease in assets and a decrease in liabilities.

f. An increase in liabilities and a decrease in equity.
g. An increase in equity and a decrease in liabilities.
Analyze transactions and compute net income.

An analysis of the transactions made by Kang & Co., a public accounting firm, for the month of August is shown below.

Instructions

a. Describe each transaction that occurred for the month.

b. Determine how much equity increased for the month.

c. Compute the amount of net income for the month.
Prepare financial statements.

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Assets Accounts - Liabilities + Accounts Share Cash + Receivable + Supplies + Equipment Payable + Capital + + 1. + 15,000 15,000 2. -2,000 +5,000 +3,000 3. -750 +750 4. +4,600 +4,500 5. -1,500 6. -2,000 Equity Retained Earnings Rev. 9,100 -1,500 Exp. - Div. Issued Shares Service Revenue 7. -650 8. +450 -450 9. -3,900 10. Dividends 2,000 -650 Rent Expense -3,900 Sal./Wages Expense +500 -500 Utilities Expense