Question

aedugen.wiley Chapter 1 Homework Weygandt, Financial & Managerial Accounting, 2e Help I System Announcements (1 Unread) IG Ou Problem 1-1A Fredonia Repair Inc. was started on May 1. A summary of May transactions is presented below. 1. Stockholders invested $10,000 cash in the business in exchange for common stock 2. Purchased equipment for $5,000 cash. 3. Paid $400 cash for May office rent. 4. Paid $300 cash for supplies 5. Incurred $250 of advertising costs in the Beacon News on account. 6. Received $4,700 in cash from customers for repair service 7. Declared and paid a $700 cash dividend. 8. Paid part-time employee salaries $1,000. 9. Paid utility bills $140. 10. Performed repair services worth $1,100 on account. 11. Collected cash of $120 for services billed in transaction (10). P Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction causes a Liability or Equity item that was reduced. See Ilustration 1-8 for example.) Assets Accounts Receivable Cash Supplies A 1. 10,000 $ -$5,000 -$400 $300 +$300 +$4,700 $700

Answer 1

	Assets								Liabilities		Stockholders' Equity
	Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Accounts Payable	+	Common Stock	+	Retained Earnings
													Revenues	-	Expenses	-	Dividends
1	10000										10000
2	-5000						5000
3	-400														400
4	-300				300
5									250						250
6	4700												4700
7	-700																700
8	-1000														1000
9	-140														140
10			1100										1100
11	120		-120
	7280		980		300		5000		250		10000		5800		1790		700

Fredonia Repair Inc.
Income Statement
For the Month Ended May 31
Service revenue		5800
Less: Expenses
Salaries expense	1000
Rent expense	400
Advertising expense	250
Utilities expense	140
Total expenses		1790
Net income		4010