Question 1 Bindy Crawford created a corporation providing legal services, Metlock, Inc., on July 1, 2022. On July 31 the balance sheet showed: Cash $5,400; Accounts Receivable $4,150; Supplies $810; Equipment $6,650; Accounts Payable $5,850; Common Stock $9,250; and Retained Earnings $1,910. During August the following transactions occurred. Aug. 1 4 9 15 Collected $1,080 of accounts receivable due from customers. Paid $2,770 cash for accounts payable due. Performed services worth $5,680, of which $3,660 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,480, paying $490 in cash and the balance on account. Paid salaries $1,480, rent for August $600, and advertising expenses $360. Paid a cash dividend of $640. 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. 19 23 26 31 Assets Stockholders' Equity METLOCK, INC. Liabilities Notes Accounts Common Payable Payable Stock Cash Accounts Receivable Supplies + Equipment = Retained Earnings + Revenues Expenses Dividends July 31 Bal. 5400 4150 810 6650 5850 9250 1910 Aug. 1 1080 -1080 4 -2770 -2770 1 x - 9 3660 2020 5680 5680 Service Reven M 15 -490 4480 3990 X x 19 -1480 -1480 1480 Salaries and > - x -600 -6001 600 Rent Expense x 1- X - -360 -360 360 Advertising E x x 23 -640 SUUUUUUT BOOOOO ngulod ICUUUUUU -640 640 Dividends 26 5750 5750 x - x 31 420 420 420 | Utilities Exper 9550 5090 810 11130 5750 7490 9250 4090 5680 28601 640 S $ $ Your answer is partially correct. Try again. Prepare an income statement for August. METLOCK, INC. Income Statement August 31, 2022 Revenues Service Revenue 5680 $U Expenses Salaries and Wages Expense 1480 Rent Expense 600 > Advertising Expense 360 Utilities Expense 420 Total Expenses 2860 Net Income / (Loss) 2820 $ Your answer is partially correct. Try again. Prepare an income statement for August. METLOCK, INC. Income Statement August 31, 2022 Revenues Service Revenue 5680 $U Expenses Salaries and Wages Expense 1480 Rent Expense 600 > Advertising Expense 360 Utilities Expense 420 Total Expenses 2860 Net Income / (Loss) 2820 $ Your answer is partially correct. Try again. Prepare a retained earnings statement for August. (List items that increase retained earnings first.) METLOCK, INC. Retained Earnings Statement X August 31, 2022 Retained Earnings, August 1 1910 Add Net Income / (Loss) 2820 4730 Less Dividends 640 Retained Earnings, August 31 A 4090 SHOW LIST OF ACCOUNTS