Problem 3-5 Sage Hill Inc. was started on May 1. A summary of May transactions is presented below. 1. Stockholders invested $24,500 cash in the business in exchange for common stock. 2. Purchased equipment for $5,000 cash. 3. Paid $300 cash for May office rent. Paid $500 cash for supplies. Incurred $300 of advertising costs in the Beacon News on account. Received $4,400 in cash from customers for performing repair service. Paid a $1,600 cash dividend. 8. Paid part-time employee salaries $1,100. 9. Paid utility bills $160. 10. Performed repair services worth $990 on account. 11. Collected cash of $100 for services billed in transaction (10). 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 the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets SAGE HILL INC. Liabilities Accounts Stockholders' Equity Retained Earnings Common Accounts + Receivable Cash + Supplies + Equipment = Payable + Stock Stock + + Revenues Expenses Dividends From an analysis of the Retained Earnings columns, compute the net income or net loss for May. SAGE HILL INC. Income Statement From an analysis of the Retained Earnings columns, compute the net income or net loss for May. SAGE HILL INC. Income Statement