Question

A tabular analysis of the transactions made during August 2022 by Sandhill Co. during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. Assets Liabilities Cash + A/R + Supp. + Equip. - Accounts Payable + Common Stock + Stockholders' Equity Retained Earnings Revenues - Expenses - Dividends $23,700 $5,080 $3,300 $730 $6,300 $10,300 Serv. Rev. 1. $23,700 2. -1,780 3. -730 4 4,000 5. -2,400 6 -2,600 7. -760 8. 460 9. -3,800 10 -2,400 -$2,600 - $760 Rent Exp. -460 -3,800 -390 Sal. Exp. Util. Exp. 390

Answer 1

SANDHILL COMPANY

Income statement

August 31,2022

Revenue
Service revenue		10300
Expense
Rent expense	760
Salaries expense	3800
Utilities expense	390
Total expense		4950
Net income		5350

2) Statement of owner's equity

August 31,2020

Beginning retained earnings	0
Add: Net income	5350
	5350
Less: Dividend	-2600
Ending retained earnings	2750

3) Balance Sheet

August 31,2022

Assets
Current assets
Cash	16090
Account receivable	5840
Supplies	730
Total Current assets		22660
Property, plant and equipment
Equipment		5080
Total Assets		27740
Liabilities and Stockholder's equity
Current liabilities
Account payable	1290
Total Current liabilities		1290
Long term liabilities		0
Total liabilities		1290
Owner's equity
Common Stock	23700
Retained earnings	2750
Total Stockholder's equity		26450
Total Liabilities and stockholder's equity		27740