P1. 2 1 1.0 4. 5) Ai Fang Co. Opened on July 1, 2020. On July 31 , the statement of financial position showed Cash $5, 000 , Accounts Receivable $1, 500 , Supplies

$500 , Equipment *6, 000 , Accounts Payable*$ 4. 200 , Share Capital - Ordinary, $4, 000 , and Retained Earnings of $ 4. Boo ( amounts in thousands ) . During August ,

the following transactions occurred .

Analyze transactions and prepare income statement , retained earnings statement , and statement of financial position .

1 . Collected $ 1, zoo of accounts receivable .

2 . Paid t's, Bou cash on accounts payable .

3 . Recognized revenue of $7. 500 of which }4. god is collected in cash and the balance is due in September .

4 . Purchased additional equipment for {2. 000 , paying $400 in cash and the balance on account .

5 . Paid salaries *'2, 800 , rent for August $ 900 , and advertising expenses $ 400 .

6 . Declared and paid $700 dividend .

7 . Received *'2, and from Standard Federal Bank _ money borrowed on a note payable .

& . Incurred utility expenses for month on account $270 .

Instructions

" . Prepare a tabular analysis of the August transactions beginning with July 31 balances . The column headings should be as follows : Cash + Accounts

Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Share Capital - Ordinary + Revenues - Expenses - Dividends .

b . Prepare an income statement for August , a retained earnings statement for August , and a statement of Financial position at August 31 .