LO 2, 3 P2-59A. (Learning Objectives 2, 3: Analyze the impact of business transactions on the accounting equation and accounts) The following amounts summarize the financial position of Grueser Computing, Inc., on September 30, 2018: Assets Liabilities Stockholders' Equity Accounts Accounts Common Retained Receivable + Supplies + Equipment Payable Stock Earnings 3,250 12,200 8,300 6,300 3,350 Cash + Bal 2,500 Transaction Analysis During October 2018, Grueser Computing completed these transactions: a. The company received cash of $3,700 and issued common stock. b. Performed services for a customer and received cash of $6,700. c. Paid $4,700 on accounts payable. d. Purchased supplies on account, $800. e. Collected cash from a customer on account, $1,300. f. Consulted on the design of a computer system and billed the customer for services ren- dered, $4,700. g. Recorded the following business expenses for the month: (1) paid office rent$1,900; (2) paid advertising$500. h. Declared and paid a cash dividend of $3,400. Requirements 1. Analyze the effects of the preceding transactions on the accounting equation of Grueser Computing, Inc. 2. Prepare the income statement of Grueser Computing, Inc., for the month ended October 31, 2018. List expenses in decreasing order by amount. 3. Prepare the entity's statement of retained earnings for the month ended October 31, 2018. 4. Prepare the balance sheet of Grueser Computing, Inc., at October 31, 2018. P2-60A. (Learning Objective 4: Journalize transactions and calculate account balances) This problem can be used in conjunction with Problem 2-59A; see that problem for the relevant data. Requirements 1. Journalize the transactions of Grueser Computing, Inc. Explanations are not required. 2. Prepare a T-account for each account. Insert in each T-account its September 30 balance as given (example: Cash $2,500). Then, post the October transactions to the T-accounts. 3. Compute the balance in each account. LO 4