Smith Contractors, Inc. began operations on October 1, 2017. The first three business transactions for the company have already been recorded as reflected in the transactions below and on the financial statement tabular analysis on page 3. For transactions 4-16, record the effect on the accounting equation and then on the tabular analysis on page 3. You will then write Financial Statements on pages 4 and 5. + 1. Received $50,000 cash in exchange for common stock Assets = Liabilities ACCT NAMES: Cash Amount +/- +$50,000 Stockholders' Equity Common Stock +$50,000 2. Borrowed $10,000 from First National Bank to finance operations, signing a 3 year, 6% N/P Assets = Liabilities + Stockholders' Equity ACCT NAMES: Cash Note Payable Amount +/- +$10,000 +$10,000 Liabilities 3. Purchased equipment for $15,000 cash Assets = ACCT NAMES: Cash Equipment Amount +/- -$15,000 +$15,000 + Stockholders' Equity Liabilities + 4. Purchased $2,000 of supplies on account Assets = ACCT NAMES: Amount +/- Stockholders' Equity 5. Received a $5,000 cash advance from a customer for services not yet performed Assets = Liabilities + Stockholders' Equity ACCT NAMES: Amount +/- 6. Purchased on October 1 a 1-year insurance policy for $1,200 Assets = Liabilities + ACCT NAMES: Amount +/- Stockholders' Equity 7. Provided services to customers during October and received $30,000 cash Assets = Liabilities + Stockholders' Equity ACCT NAMES: Amount +/- Stockholders' Equity 8. Paid wages of $2,650 to employees for the month of October Assets = Liabilities + ACCT NAMES: Amount +/- Liabilities + 9. Paid $1,000 for the October utility bill Assets = ACCT NAMES: Amount +/- Stockholders' Equity + Stockholders' Equity 10. Paid rent of $2,500 for October's office rental Assets = Liabilities ACCT NAMES: Amount +/- 11.Paid dividends of $3,000 during October | Assets = ACCT NAMES: Amount +/- Liabilities + Stockholders' Equity At the end of the month, Smith Contractors, Inc. needs to record the following adjusting transactions to update their accounting records: 12. The company completed a physical count of supplies and determined that $1,000 of supplies are still on hand. Record the use of supplies. Assets = Liabilities + Stockholders' Equity ACCT NAMES: Amount +/- 13. The company provided services of $1,000 to the customer that paid in advance (in #5) Assets = Liabilities + Stockholders' Equity ACCT NAMES: Amount +/- 14.Depreciation expense on equipment of $500 needs to be recorded Assets = Liabilities + Stockholders' Equity ACCT NAMES: Amount +/- 15. Record insurance expense for the month of October Assets = Liabilities ACCT NAMES: Amount +/- + Stockholders' Equity 16. Record accrual of interest expense on Note Payable for the month of October Assets = Liabilities + Stockholders' Equity ACCT NAMES: Amount +/- Using the tabular analysis on the next page, summarize transactions 4-16 above to determine the ending balance in each account. Write the account names in the top row and the dollar amount increase or decrease of each transaction that effects that account in each row underneath. If Retained Earnings has been effected, be sure to note the specific revenue, expense, or dividend account. You will need that information to complete the Income Statement. Total up all of the transactions (#1-16) on the tabular analysis to determine the ending balance in each account and note it in the bottom row. You will use these totals to write the financial statements. Assets Cash Equip Liabilities Note Payable Stockholder's Equity Common Stock +50,000 +50,000 2. +10,000 +10,000 3.-15,000 +15,000 On the next 2 pages, summarize the information from the table above by preparing Smith Contractors, Inc.'s Income Statement and Statement of Retained Earnings for the month ended October 31, 2017 and a Classified Balance Sheet as of October 31, 2017. Be sure you include all labels, totals, and subtotals. You may not need all the lines given. Smith Contractors, Inc. Income Statement For the Month Ended October 31, 2017 Smith Contractors, Inc. Statement of Retained Earnings For the Month Ended October 31, 2017 Be sure to include all the necessary subtotals and totals as outlined in Chapter 2 for a Classified Balance Sheet. You may not need all the lines. Smith Contractors, Inc. Balance Sheet As of October 31, 2017