a edugen.wileyplus.com Problem 1-1A Fredonia Repair Inc, was started on May 1. A

Question

a edugen.wileyplus.com Problem 1-1A Fredonia Repair Inc, was started on May 1. A summary of May transactions is presented below L Stockholders invested $15,500 cash in the business in exchange for common stock. 2 Purchased equipment for $6,000 cash. Paid $200 cash for May office rent. Paild $500 cash for supplies. Incurred $150 of advertising costs in the Beacon News on account. 4 Received $5,200 in cash from customers for repair service Declared and paid a $1,600 cash dividend. Paid part-time employee salaries $800 Paild utility bills $160 0 Performed repair services worth $1,040 on account L Collected cash of $120 for services billed in transaction (10) a Your answer is correct Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction, causes a decrease in Assets, Liabilities or Stockholders' ? place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Ilustra 8 for example.) Assets Stockholders' Equity Retained Earnings

Explanation / Answer

Ans. Fredonia Repair Inc. Income statement For the month ended May 31 Particulars Amt.($) Amt.($) Service Revenue $6,240 Less: Expenses     Office rent $200     Advertisement Expense            150     Employee Salary            800     Utility Bills            160 Total Expenses         1,310 Net Income $4,930

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