Wong Computer Corporation entered into these transactions during the month of May:
1. Purchased computers on account for $8,000 from Dell.
2. Paid $1,600 for rent for the month of May.
3. Provided computer services for $3,800 on account.
4. Paid Ontario Hydro $300 cash for utilities used in May.
5. Issued common shares to Li Wong in exchange for an additional $20,000 investment in the business.
6. Paid Dell for computers purchased in transaction 1.
7. Purchased a one-year accident insurance policy for $500 cash.
8. Received $3,000 cash in partial payment of the account in transaction 3.
9. Paid Li Wong a $500 dividend.
10. Paid income tax of $250 for the month.
Instructions
(a) Prepare a tabular analysis of the effects of the above transactions on the expanded accounting equation.
(b) Calculate profit for the month.