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) $20,000 $20,000 Com. Stock (2) 1,000 $5,000 $4,000 (3) 750 $750 (4) 4,100 $5,400 $9,500 Serv. Rev. (5) 1,500 1,500 (6) 2,000 $2,000 Div. (7) 800 $800 Rent Exp. (8) 450 450 (9) 3,000 3,000 Sal. Exp. (10) 300 300 Util. Exp.

Question 2 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 $20,000 Com. Stock (1) $20,000 (2) 1,000 -750 $5,000 $4,000 $750 4,100 $5,400 $9,500 Serv. Rev (5) 1,500 (6) 2,000 -800 450 (9) 3,000 -1,500 -$2,000 Div -$800 Rent Exp -450 -3,000 -300 Sal. Exp Util. Exp (10) 300 Your answer is partially correct. Try again Prepare an income statement for August COLAW COMPANY Income Statement For the Month Ended August 31, 2014 Revenues $9,500 Expenses $800 $3,000 $300 Total Expenses $4,100 Retained Earnings, August 31 V $5,400