Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Linda Repair Inc. was started on May 1. A summary of May transactions is presented below. 1. Stockholders invested $8,400 cash in the business in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Linda Repair Inc. was started on May 1. A summary of May transactions is presented below. 1. Stockholders invested $8,400 cash in the business in exchange for common stock. 2. Purchased equipment for $4,200 cash. 3. Paid $336 cash for May office rent. 4. Paid $ 252 cash for supplies. 5. Incurred $ 210 of advertising costs in the Beacon News on account. 6. Performed repair services for customer for $ 3,948 cash. Paid a $ 588 cash dividend. 7. 8. 9. Paid part-time employee salaries $ 840. Paid utility bills $118. Performed repair services worth $924 on account. 10. 11. Collected cash of $ 100 for services billed in transaction (10). Prepare a tabular analysis of the transactions. Include margin explanations for any changes in revenues or expenses. Revenue is called Service Revenue. (If a transaction results in 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.) Stockholders' Equity Retained Earnings Common Stock Revenues Expenses Dividends 8400 $ -336 -210 3948 -336 -210 3948 -588 840 - 118 924 8400 $ 2780 Assets Cash Accounts Receivable Supplies Equ 1. $ $ 8400 $ $ $ 2. -4200 3 . -336 1 I 4 -252 252 5. 6. 3948 7 -588 8 -840 2. -4200 3 -336 252 4. -252 5. 6. 3948 7 -588 8. -840 9 118 924 10 -100 100 11 252 $ 824 6114 $ 513 for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) LINDA REPAIR INC. Liabilities Supplies Equipment Accounts Payable Common Stock 8400 4200 252 210 210 252 $ 4200 $ 210 $ 8400 Retained Earnings Revenues Expenses Dividends $ 336 Utilities Expense Service Revonuo Dividends Advertising Expense Salaries and Wages Expense Rent Expense 210 3948 588 -840 336 -210 3948 588 840 118 + 924 2780

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Intelligence For New-Generation ManagersCurrent Avenues Of Development

Authors: Jörg H. Mayer, Reiner Quick

6th Edition

3319156950, 9783319156958

More Books

Students also viewed these Accounting questions

Question

Have you presented all the relevant facts?

Answered: 1 week ago