1. An analysis of the transaction made by Foley & co. a certified public accounting firm,for the month of August is shown below. Each decreases in stockholder equity is explained.

Assets =Liabilities+ Stockholders equity

Cash + Acc.Rec+ Supplies+ Equipments Acc.Payable + Commonstock+ Retained Earnings

Rev- Exp- Div.

1.$1500

2.-2000 +$5,000 +$3000

3.-750 +$750

4.+400 +$4,500 +$9,400

5.-1500 -1500

6. -2,000 -$2,000

7.-850 -$850

8. +450 -450 -3,900

9. -3,900 -500

10. +500

a. Describe each transaction that occur for the mont

b. determine how much stockholder's equity increased for the month

c. compute the amount of net income for the month

2. An analysis for transaction for Foley & Co was presented in question 1. Assume that prepare financial statements Augusr is the company's first month of business

Prepare an income statement and a retained earnings statement for august and a balance sheet at august 31,2017