3

Question 3 A tabular analysis of the transactions made during August 2014 by Colaw Company during its first month of operations is shown below. Each increase and decrease in stockholders equity is explained.

Assets	=	Liabilities	+	Stockholders Equity
Cash	+	A/R	+	Supp.	+	Equip.	=	Accounts Payable	+	Common Stock	+	Retained Earnings
Revenues		Expenses		Dividends
(1)	$15,790	$15,790	Com. Stock
(2)	1,600	$5,100	$3,500
(3)	660	$660
(4)	5,010	$5,870	$10,880	Serv. Rev.
(5)	2,260	2,260
(6)	2,160	$2,160	Div.
(7)	730	$730	Rent Exp.
(8)	390	390
(9)	3,720	3,720	Salar. Exp.
(10)	310	310	Util. Exp.

Determine how much stockholders equity increased for the month.

Increase in stockholders equity

$

Compute the net income for the month.

The net income

$