Question

A tabular analysis of the transactions made during August 2022 by Carla Vista Co. during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. Assets - Cash + A/R + Supp. + Equip. Liabilities + Stockholders' Equity Accounts Payable + Common Stock + Retained Earnings Revenues - Expenses Dividends $ 22,100 $22,100 - $5,030 $3,450 -1,580 -790 3,500 $790 Serv. Rev. $6,300 -1.700 -$1,500 -1.500 6 N -$820 Rent Exp. -820 500 -3,800 -500 o -3,800 Sal. Exp. -390 Util. Exp. . Your Answer Correct Answer

Answer 1

Carla Vista Co.
Retained Earnings Statement
For Month ended August 31, 2022
Retained Earnings , August 1	-
Add: Net Income (Loss)	4,790
	4,790
Less: Dividends	(1,500)
Retained Earnings , August 31	3,290

Net Income (Loss) Calculation

Carla Vista Co.
Income Statement
For Month ended August 31, 2022
Service Revenue		9,800
Expenses
Salaries expense	3,800
Rent expense	820
Utilities expense	390
Total Expenses		5,010
Net Income (Loss)		4,790