Bob recently started a new corporation called Bobs Consulting, and had the following transactions during its first month of business of August 2020.

1. Bob invested his own funds into the business from his personal bank account by purchasing $2,000 worth of common shares.
2. Bob paid $800 in rent: $400 for AGeneralugust and $400 for September

3. Purchased computer for $700, on account

4. Took out a bank loan of $2,000. The loan was advanced on August 1. The terms of the loan are 12% interest per year, with interest and principal due in full in a year.

5. Paid $300 to an assistant for wages for the period August 1 to August 20
6. Purchases office supplies for $700 on account

7. Performed $2,000 worth of consulting work for Customer A and received $1,200 cash. The remaining amount will be collected at a later date

8. Purchased $120 for adverting on account for a radio ad. The ad was immediately aired.

1. Collected $650 of the accounts receivable

10. Paid $100 towards the amount owing for the radio ad.

11. Paid off the supplies purchase on account.

12. Bobs Consulting paid a $200 dividend to Bob.

13. Paid for the computer (from C).
14. Received $1,500 from Customer B: $1,000 was for work done in August, and $500 for work to most likely be done in September. Customer B also signed a contract for $400 in additional work to be done in October and paid in October.
15. At the end of the month, recognized $50 in computer depreciation.
16. At the end of the month, only $50 of office supplies were on hand.

Other Items:

17. On September 5, paid $300 to an assistant for wages: $200 were for the period August 20 to August 31, and $100 was for the period September 1 to September 3.
18. On July 31 2021, paid $2,240 toward the bank loan.

Required

1. In the file provided General Ledger, record each of the transactions as they relate to the month of August.
2. Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet.

Assets Liabilities + Shareholder Equity Retained Earnings Bank Accounts Recievable Interest Accumlated Depreciation Equipment Pre-paid expenses Equipment (computer) Wages Payable Unearned Revenue Common Stock Transaction Cash Supplies Revenues Accounts Payable increase (decrease) Expenses Dividends Loan increase (decrease) Payable increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) increase (decrease) A B D E F G H 1 J K L 20 OZ 3 P