A tabular analysis of the transactions made by Roberta Mendez & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholders’ equity is explained.
|
Assets |
= |
Liabilities |
+ |
Stockholders’ Equity |
|||||||
|
Retained Earnings |
|||||||||||
|
Cash |
+ |
Office |
= |
Accounts Payable |
+ |
Common |
+ |
Revenue |
Expenses |
||
|
+$25,000 |
+$25,000 |
Issued Stock |
|||||||||
|
+$7,000 |
= |
+$7,000 |
|||||||||
|
+8,000 |
+$8,000 |
$850 |
Issued Stock |
||||||||
|
+850 |
+ |
$8,000 |
$850 |
Rent Expense |
|||||||
|
$32,150 |
+ |
$7,000 |
= |
$7,000 |
+ |
$25,000 |
|||||
|
$39,150 |
$39,150 |
||||||||||