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Bindy Crawford created a corporation providing legal services, Bindy Crawford Inc., on July 1, 2017. On July 31, the balance sheet showed Cash $4,000; Accounts

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Bindy Crawford created a corporation providing legal services, Bindy Crawford Inc., on July 1, 2017. On July 31, the balance sheet showed Cash $4,000; Accounts Receivable $2,500, Supplies $500; Equipment $5,000; Accounts Payable $4,200; Common Stock $6,200, and Retained Eamings $1,600. During August, the following transactions occurred. Aug 1 Collected $1,100 of accounts receivable due from customers. 4 Paid $2,700 cash for accounts payable due 9 Performed services worth $5,400 of which $3,600 is collected in cash and the balance is due in September. 15 Purchased additional office equipment for $4,000, paying $700 in cash and the balance on account. 19 Paid salaries $1,400, rent for August $700, and advertising expenses $350. 23 Paid a cash dividend of $700. 26 Borrowed $5,000 from Standard Federal Bank; the money was borrowed on a 4-month note payable. 31 Incurred utility expenses for the month on account $380. Instructions a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be Cash + Accounts ReceivableSupplies Equipment Notes Payable + Accounts Payable Common Stock Retained Eanings +Revenue Expenses - Dividends. Include margin explanations for any changes in Retained Earnings. Prepare an income statement for August, a retained eamings statement for August, and a classified balance sheet at August 31. b) BINDY CRAWFORD INC. Income Statement For the Month Ended August 31, 2017 Revenues $5,400] Service revenue Expenses Salaries and wages expense Rent expense Utilities expense Advertising expense #VALUE! #VALUE ! Total expenses Net income BINDY CRAWFORD INC. Retained Eamings Statement For the Month Ended August 31, 2017 Retained eanings, August 1 Add: Net income Less: Dividend:s Retained eanings, August 31 BINDY CRAWFORD INC. Balance Sheet August 31, 2017 Assets Current assets Cash Accounts receivable Supplies Total current assets Equipment Total assets Liabilities and Stockholders' Equity Current liabilities Notes payable Account payable Total current liabilities 2 Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity

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