Problems Analyze transactions and compute net income. Excel Check figures provide a key number to let you know you are on the right track. a. Total assets $13,560 b. Net income $4,010 P1.1A (LO 4), AP Fredonia Repair Inc. was started on May 1. A summary of May transactions is pre- sented as follows. 1. Stockholders invested $10,000 cash in the business in exchange for common stock. 2. Purchased equipment for $5,000 cash. 3. Paid $400 cash for May office rent. 4. Paid $300 cash for supplies. 5. Incurred $250 of advertising costs in the Beacon News on account. 6. Received $4,700 in cash from customers for repair service. 7. Declared and paid a $700 cash dividend. 8. Paid part-time employee salaries $1,000. 9. Paid utility bills $140. 10. Performed repair services worth $1,100 on account. 11. Collected cash of $120 for services billed in transaction (10). Instructions a. Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in stockholders' equity. Revenue is called Service Revenue. b. From an analysis of the Retained Earnings columns, compute the net income or net loss for May.
Problems Analyze transactions and compute net income. Excel Check figures provide a key number to let you know you are on the right track. a. Total assets $13,560 b. Net income $4,010 P1.1A (LO 4), AP Fredonia Repair Inc. was started on May 1. A summary of May transactions is pre- sented as follows. 1. Stockholders invested $10,000 cash in the business in exchange for common stock. 2. Purchased equipment for $5,000 cash. 3. Paid $400 cash for May office rent. 4. Paid $300 cash for supplies. 5. Incurred $250 of advertising costs in the Beacon News on account. 6. Received $4,700 in cash from customers for repair service. 7. Declared and paid a $700 cash dividend. 8. Paid part-time employee salaries $1,000. 9. Paid utility bills $140. 10. Performed repair services worth $1,100 on account. 11. Collected cash of $120 for services billed in transaction (10). Instructions a. Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in stockholders' equity. Revenue is called Service Revenue. b. From an analysis of the Retained Earnings columns, compute the net income or net loss for May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Hello it’s already been solved but can I please get this in excel sheet form ?
Transcribed Image Text:Problems
Analyze transactions and compute net
income.
Excel
Check figures provide a key
number to let you know you are
on the right track.
a. Total assets $13,560
b. Net income $4,010
P1.1A (LO 4), AP Fredonia Repair Inc. was started on May 1. A summary of May transactions is pre-
sented as follows.
1. Stockholders invested $10,000 cash in the business in exchange for common stock.
2. Purchased equipment for $5,000 cash.
3. Paid $400 cash for May office rent.
4. Paid $300 cash for supplies.
5. Incurred $250 of advertising costs in the Beacon News on account.
6. Received $4,700 in cash from customers for repair service.
7. Declared and paid a $700 cash dividend.
8. Paid part-time employee salaries $1,000.
9. Paid utility bills $140.
10. Performed repair services worth $1,100 on account.
11. Collected cash of $120 for services billed in transaction (10).
Instructions
a. Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts
Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with
separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any
changes in stockholders' equity. Revenue is called Service Revenue.
b. From an analysis of the Retained Earnings columns, compute the net income or net loss for May.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education