The following amounts summarize the financial position of Ready Resources, Inc., on May 31, 20X8: During June

Question:

The following amounts summarize the financial position of Ready Resources, Inc., on May 31, 20X8:

During June 20X8, Ready Resources completed these transactions:
a. The business received cash of $5,000 and issued common stock.
b. Performed services for a customer and received cash of $6,700.
c. Paid $5,000 on accounts payable.
d. Purchased supplies on account, $1,000.
e. Collected cash from a customer on account, $500.
f. Consulted on the design of a computer system and billed the customer for services rendered, $2,400.
g. Recorded the following business expenses for the month: (1) paid office rent-$900; (2) paid advertising-$300.
h. Declared and paid a cash dividend of $1,800.
Required
1. Analyze the effects of the preceding transactions on the accounting equation of Ready Resources, Inc. Adapt the format of Exhibit 2-1, Panel B.
2. Prepare the income statement of Ready Resources, Inc., for the month ended June 30,
20X8. List expenses in decreasing order by amount.
3. Prepare the entity's statement of retained earnings for the month ended June 30, 20X8.
4. Prepare the balance sheet of Ready Resources, Inc., at June 30, 20X8.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...