Question
A: Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity,
A: Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
B: From an analysis of the Retained Earnings columns, compute the net income or net loss for May. (Income Statement)
Fredonia Repair Inc. was started on May 1. A summary of May transactions is presented below.
1. | Stockholders invested $10,000 cash in the business in exchange for common stock. | |
2. | Purchased equipment for $4,000 cash. | |
3. | Paid $200 cash for May office rent. | |
4. | Paid $300 cash for supplies. | |
5. | Incurred $150 of advertising costs in the Beacon News on account. | |
6. | Received $3,700 in cash from customers for repair service. | |
7. | Declared and paid a $1,000 cash dividend. | |
8. | Paid part-time employee salaries $800. | |
9. | Paid utility bills $120. | |
10. | Performed repair services worth $880 on account. | |
11. | Collected cash of $100 for services billed in transaction (10) |
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