On May 1, Better Bob, Inc. was started. A summary of May transactions is presented below.

1. Stockholders invested \(\$ 15,000\) cash in the Fox Valley Bank in the name of the business.

2. Purchased equipment for \(\$ 5,000\) cash.

3. Paid \(\$ 400\) cash for May rent.

4. Incurred $300 of advertising costs in the Chicago Tribune, on account.
5. Paid $600 cash for office supplies.
6. Earned $9,000 for services rendered: Cash of $1,000 is received from customers, and the balance of $8,000 is billed to customers on account.
7. Paid $200 cash dividend.
8. Paid Chicago Tribune amount due in transaction (4).
9. Paid employees’ salaries, $1,200.
10. Cash of $8,000 is received from customers who have previously been billed in transaction (6).

Analyze transactions and compute net income. \((506.7\) )

Analyze transactions and prepare income statement and retained earnings statement. (SO 6, 7, 8) \(\square\)
Instructions

(a) Prepare a tabular analysis of the transactions using the following column headings:
Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock and Retained Earnings.

(b) From an analysis of the column, Retained Earnings, compute the net income or net loss for April.