Problem 3-03A Bindy Crawford created a corporation providing legal services, Tamarisk, Inc., on July 1, 2022. On July 31 the balance sheet showed: Cash $5,900; Accounts Receivable $5,250; Supplies $710; Equipment $7,750; Accounts Payable $6,950; Common Stock $10,850; and Retained Earnings $1,810. During August the following transactions occurred. Aug. 1 4 9 15 19 23 26 31 Collected $1,130 of accounts receivable due from customers. Paid $2,610 cash for accounts payable due. Performed services worth $5,690, of which $3,600 is collected in cash and the balance is due i Purchased additional office equipment for $4,510, paying $500 in cash and the balance on account. Paid salaries $1,500, rent for August $720, and advertising expenses $340. Paid a cash dividend of $700. Borrowed $5,750 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420. Your answer is partially correct. Try again. Prepare a tabular analysis of the August transactions beginning with July 31 balances. Include margin explanations for any changes in Retained Earnings. (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 3-4 for example. Post entries in the order presented in the question.) Assets + Accounts Receivable + 5250 Supplies + Cash 5900 - TAMARISK, INC. Liabilities Stockholders' Equity = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + _Revenues Expenses 6950 10850 181 Dividends Equipment 7750 July 31 Bal. 1130 -2610 1 3600 2090 5690 1 Service Revenue T -500 T 4510 4010 19 -1500 1500 Salaries and Wages Expense -720 720 TRent Expense -340 Advertising Expense -700 700 TDividends 5750 T 5750 Utilities Expense 10010 2030 12260 = 10850 5690 2980 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Prepare an income statement for August. TAMARISK, INC. Income Statement For the Month Ended August 31, 2022 Revenues Service Revenue 5690 Expenses | Salaries expense 1500 Rent Expense 720 Advertisement expense utilities expense Total Expenses 2710 Net Income / (Loss) 2980 Your answer is partially correct. Try again. Prepare a retained earnings statement for August. (List items that increase retained earnings first.) TAMARISK, INC. Retained Earnings Statement For the Month Ended August 31, 2022 Retained Earnings, August 1 1810 Pada ). Net Income / (Loss) Net Income / (Loss) 2980 4790 Ples v Powidendo 700 Retained Earnings, August 31 4090 Your answer is partially correct. Try again. Prepare a classified balance sheet at August 31. (List current assets in order of liquidity) TAMARISK, INC. Balance Sheet August 31, 2022 Assets Current Assets Cash 10010 Accounts receivables T 2030 Supplies Total Current Assets 12750 Equipment (Non Current Assets) 12260 Total Assets ssets 25010 Liabilities and Stockholders' Equity rrent Liabilities Notes payable 5750 Accounts Payable 8770 X T Total Liabilities 14520 Stockholders' Equity T Common Stock 10850 T Retained Earnings 1810 T Total Stockholders' Equity 12660 - Total Liabilities and Stockholders' Equity 27180