Q2. Kiki's Famous Desserts Corporation was formed on July 1, 2018. On July 31, the balance shhet showed Cash $7,000, Accounts Receivable (A/R) $2,000, Supplies $500, Office Equipment $5,000, Accounts Payable (A/P) $5,500, Common Stock (CS) $7,500, and Retained Earnings (R/E) $1,500. During August, the following transactions occurred.

(a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. The first row headings should be as follows: Cash + A/R + Supplies + Office Equipment = N/P + A/P + CS + R/E

(b) Prepare an income statement for August, a retained earnings staement for August, and a Balance sheet at August 31

1. Collected $1,000 of accounts receivable

2. Paid $1,200 cash on accounts payable

3. Earned revenues of $10,000, of which $3,000 is collected in cash and the balance is due in September

4. Purchased additional office equipment for $2,000, paying $250 in cash and the balance on account

5. Paid salaries $2,000, rent for August $1,500, and advertising expenses $450

6. Paid dividends of $550

7. Received $1,000 from Allied Bank- money borrowed on a note payable

8. Incurred utility expenses for month on account $500