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Question 4 Kinneys Repair Ltd. was started on May 1. A summary of May transactions is presented below. 1. Shareholders invested 19,662 cash in the
Question 4
Kinneys Repair Ltd. was started on May 1. A summary of May transactions is presented below.
1. | Shareholders invested 19,662 cash in the business in exchange for ordinary shares. | |
2. | Purchased equipment for 4,931 cash. | |
3. | Paid 337 cash for May office rent. | |
4. | Paid 617 cash for supplies. | |
5. | Incurred 322 of advertising costs in the Beacon News on account. | |
6. | Received 5,148 in cash from customers for repair service. | |
7. | Declared and paid a 1,491 cash dividend. | |
8. | Paid part-time employee salaries 833. | |
9. | Paid utility bills $156. | |
10. | Performed repair service worth 925 on account. | |
11. | Collected cash of 106 for services billed in transaction (10). |
Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis (15,000).)
From an analysis of the Retained Earnings columns, compute the net income or net loss for May.
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