Question

Bindy Crawford created a corporation providing legal services, Kingbird, Inc., on July 1, 2022. On July 31 the balance sheet showed: Cash $6,200; Accounts Receivable $7,500; Supplies $950; Equipment $10,000; Accounts Payable $9.200; Common Stock $13,400, and Retained Earnings $2,050. During August the following transactions occurred. Aug. 1 Collected $1,050 of accounts receivable due from customers. 4 Paid $2,790 cash for accounts payable due 9 Performed services worth $5,720, of which $3,560 is collected in cash and the balance is due in September Purchased additional office equipment for $4,360, paying $410 in cash and the balance on account. Paid salaries $1,350, rent for August $790, and advertising expenses $320. Paid a cash dividend of $770. 26 Borrowed $5,050 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $360. 15 19 23 31 (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. Include margin explanations for any changes in Retained Earnings. Of a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for cuample. Post entries in the order presented in the question) KINGBIRD, INC Liabilities Notes Payable Accounts Payable . Common Stock Retained Earning $

Answer 1

KINGBIRD, INC., Liabilities Notes Accounts payable + payable 0 + 9200 common stock 13400 Stockholders equity Retained earning + Revenue Expense 2050 Dividend 950 + + + + -2790 + Asset Accounts Cash receivable + Supplies - Equipment 6200 + 7500 + 100001 1050 + -1050 + + -2790 + + 3560 + 2160 + -410 + + 4360 -1350 + -790 + + -320 + -770 + + 5050 + + + 57201 Services provided + + Bal Aug-01 Aug-04 Aug-09 Aug-15 Aug-19 Aug-19 Aug-19 Aug-23 Aug-26 Aug-31 3950 + + + + 1350 790 320 Salary expense Rent expense Advertising expense 770 Dividend + + + + 5050 + + + + 360 360 Utility expense Total $ 9430 + $ 8610 + $ 950 + $ 143601 $ 5050 $ 10720 $ 13400 $ 2050 $5720 $ 2820 $ 770 In income statement ,Revenue is equals to 5720 (from above template) and which makes total expense equals to 2820 and net income equals to 5720 - 2820 = $ 2900 Retained earning at end = 2050 +2900 Net income = 4950 - 770 dividend = $ 4180 In Balance sheet by taking correct figures for each from above template total asset =total liabilities and stockholders equity = $33350

Hope You Understood. If you have any doubt please leave a comment. Thank You