Analyzing transaction with the (1) accounting equation and (2) preparing the Income Statement and Statement of Retained Earnings.
The following amounts summarize the financial position of Ready Resources, Inc., on May 31, 20X8:
|
Cash: |
1,200 |
|
Account Receivable: |
1,500 |
|
Supplies: |
0 |
|
Land: |
12,000 |
|
Account Payable: |
8,000 |
|
Common Stock: |
4,000 |
|
Retained Earnings: |
2,700 |
During June, 20X8, Ready Resources completed these transactions:
|
a. |
The business received cash of $5,000 and issued common stcok. |
|
b. |
Performed services for a customer and received cash of $6,700. |
|
c. |
Paid $5,000 on accounts payable. |
|
d. |
Purchased supplies on account, $1,000. |
|
e. |
Collected cash from a customer on account, $500. |
|
f. |
Consulted on the design of a computer system and billed the customer for services rendered, $2,400. |
|
g. |
Recorded the following business expenses for the month: (1) paid office rent $900; (2) paid advertising $300. |
|
h. |
Declared and paid a cash dividend of $1,800. |