Question

Proper classified balance sheet at May 31, 2022. P3 A 0 1, 2), AP Bindy Crawford created a corporation providing legal services, Bindy. Inc., on July 1, 2022. On July 31 the balance sheet showed Cash $4,000, Accounts Receivable Supplies $500. Equipment $5,000, Accounts Payable $4,200, Common Stock $6,200, and key Earnings $1.600. During August, the following transactions occurred. Aug. 1 4 9 15 Collected $1,100 of accounts receivable due from customers. Paid $2,700 cash for accounts payable due. Performed services worth $5,400, of which $3,600 is collected in cash and the balance due in September Purchased additional office equipment for $4,000, paying $700 in cash and the balan on account Paid salaries $1.400, rent for August $700, and advertising expenses $350. Paid a cash dividend of $700. Borrowed $5,000 from American Federal Bank; the money was borrowed on a 4-mon note payable. incurred utility expenses for the month on account $380. 19 23 26 31 5,150 Instructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances. The colu heading should be Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Acco Payable + Common Stock + Retained Earnings + Revenues - Expenses - Dividends. Include ma explanations for any changes in Retained Earnings. b. Prepare an income statement for August, a retained earnings statement for August, and a class balance sheet at August 31. 2,570 53,470 15. GLS e and miniature golf course, paying ad P3.4A (LO 3), AP Bradley's Miniature Golf and Driving Range Inc. was opened on March 1 by Bob These selected events and transactions occurred during March Mar. 1 Stockholders invested $50,000 cash in the business in exchange for common stock corporation. 3 Purchased Snead's Golf Land for $38,000 cash. The price consists of land $23.000 ing $9.000, and equipment $6,000. (Record this in a single entry) 5 Advertised the opening of the driving range and miniature golf course, Davi ing expenses of $1,200 cash. 6 Paid cash $2,400 for a 1-year insurance policy

Answer 1

As per policy we have to answer first question.

Solution:

	Cash	+	A/R	+	Supplies	+	Equipment	=	Notes payable	+	A/P	+	Common stock	+	Retained earnings	+	Revenue	-	Expenses	-	Dividends
July 31 Bal.	4000	+	2500	+	500	+	5000	=			4200		6200		1600
Aug-01	1100		-1100					=
Aug-04	-2700							=			-2700
Aug-09	3600		1800					=									5400
Aug-15	-700						4000	=			3300
Aug-19	-2450							=											2450
Aug-23	-700							=													700
Aug-26	5000							=	5000
Aug-31								=			380								380
	7150	+	3200	+	500	+	9000	=	5000	+	5180	+	6200	+	1600	+	5400	-	2830	-	700

INCOME STATEMENT
Revenue
Service Revenue		5400
Expenses
Salaries and wage expense	1400
Rent expense	700
Utilities expense	380
Advertising expense	350	2830
Total expense
Net income		2570
RETAINED EARNINGS STATEMENT
Retained earnings, Aug-1		1600
Add: Net income		2570
		4170
Less: Dividends		700
Retained earnings, Aug-31		3470
BALANCE SHEET
Current assets
Cash	7150
A/R	3200
Supplies	500	10850
Equipment		9000
Total assets		19850
Liabilities and stockholder's equity
Current liabilities
Notes payable	5,000
Accounts payable	5,180
Total Current liabilities		10,180
Common stock	6,200
Retained earnings	3,470	9,670
Total liabilities and stockholder's equity		19,850