Pracolada Corp. was started on May 1. A summary of May transactions is presented below. 1 Stockholders invested $21,000 cash in the business in exchange for common stock. 2. Purchased equipment for $4,000 cash. 3. Paid $300 cash for May office rent. 4. Paid $500 cash for supplies. 5. Incurred $150 of advertising costs in the Beacon News on account. 6. Received $5,700 in cash from customers for repair service 7. Declared and paid a $1,100 cash dividend. 8. Paid part-time employee salaries $1,000. 9. Paid utility bills $140. 10. Performed repair services worth $1,070 on account. 11. Collected cash of $140 for services billed in transaction (10). Your answer is partially correct. Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction couses a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) Pin Assets Accounts Cash Receivable Supplies Equipment 1. $ 21000 SC 1 $ is 4000) 4000 From an analysis of the Retained Earnings columns, compute the net income or net loss for May. Pina Colada Corp. Income Statement For the Month Ended May 31 : Service Revenue Expenses Rent Expense 300 Utilities Expense 140 Salaries and Wages Expense 1000 Supplies Expense 500 Expenses Net Income /(Loss)