Problem 1-1A Sunland Company was started on May 1. A summary of May transactions is presented below Stockholders invested $15,500 cash in the business in exchange for common stock. Purchased equipment for $6,000 cash Paid $200 cash for May office rent 1 2. 3. Paid $500 cash for supplies. 4. Incurred $150 of advertising costs in the Beacon News on account. 5. Received $5,200 in cash from customers for repair service. 6. Declared and paid a $1,600 cash dividend. 7. Paid part-time employee salaries $800 8. Paid utility bills $160. Performed repair services worth $1,040 on account. Collected cash of $120 for services billed in transaction (10). 9. 10. 11 Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction causes 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. See Illustration 1-8 for example.) Sunland Company Liabilities Stockholders' Equity Assets Retained Earnings Accounts Accounts Common Cash Receivable Equipment Stock Supplies Payable Dividends Revenues Expenses 1. $ $ $ $ $ $ 2. 3. 4. 5. 6. 7. 8 9. 10. 11. From an analysis of the Retained Earnings columns, compute the net income or net loss for May Sunland Company Income Statement 40