Tamarisk, Inc. was started on May 1. A summary of May transactions is presented as follows. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Stockholders invested $11,000 cash in the business in exchange for common stock. Purchased equipment for $4,000 cash. Paid $400 cash for May office rent. Paid $500 cash for supplies. Incurred $350 of advertising costs in the Beacon News on account. Received $4,200 in cash from customers for repair service. Declared and paid a $1,400 cash dividend. Paid part-time employee salaries $1,000. Paid utility bills $140. Performed repair services worth $880 on account. Collected cash of $130 for services billed in transaction (10).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tamarisk, Inc. was started on May 1. A summary of May transactions is presented as follows.
1. Stockholders invested $11,000 cash in the business in exchange for common stock.
Purchased equipment for $4,000 cash.
Paid $400 cash for May office rent.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Paid $500 cash for supplies.
Incurred $350 of advertising costs in the Beacon News on account.
Received $4,200 in cash from customers for repair service.
Declared and paid a $1,400 cash dividend.
Paid part-time employee salaries $1,000.
Paid utility bills $140.
Performed repair services worth $880 on account.
Collected cash of $130 for services billed in transaction (10).
Transcribed Image Text:Tamarisk, Inc. was started on May 1. A summary of May transactions is presented as follows. 1. Stockholders invested $11,000 cash in the business in exchange for common stock. Purchased equipment for $4,000 cash. Paid $400 cash for May office rent. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Paid $500 cash for supplies. Incurred $350 of advertising costs in the Beacon News on account. Received $4,200 in cash from customers for repair service. Declared and paid a $1,400 cash dividend. Paid part-time employee salaries $1,000. Paid utility bills $140. Performed repair services worth $880 on account. Collected cash of $130 for services billed in transaction (10).
(b)
From an analysis of the Retained Earnings columns, compute the net income or net loss for May.
Tamarisk, Inc.
Income Statement
+A
MI
LA
$
Transcribed Image Text:(b) From an analysis of the Retained Earnings columns, compute the net income or net loss for May. Tamarisk, Inc. Income Statement +A MI LA $
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