E3-4 A tabular analysis of the transactions made during August 2014 by Colaw Com
ID: 2436436 • Letter: E
Question
E3-4 A tabular analysis of the transactions made during August 2014 by Colaw Company during its fiast month of opcrations is shownm below, Each increase and decrease in stockholders equity is explained Assets Liabilities 1 Stockholders Accounts Common Retained Earnings Cash 1 A/R I Supp 1 Equip. 3 Payable 1 Stock 1 Rev. 2 Exp. 2 Div 1, 1520,000 1520,000 Com Stock 2. 21,000 135,000 184,000 3. 2750 15750 4. 14,100 IS5,400 159,500 Serv. Rev 5. 21,500 21.500 6. 22,000 252,000 Di 7. 2800 25 800 Reet E 8. 1450 2450 9, 23,000 23,000 Salar. E 10. 1300 2300 Util. Exp (a) Describe each transaction b) Determine how much stockholders' equity increased for the month (e) Compute the net income for the month I. The company issued shares of stock to stockholders for $20,000cah 2. The company purchased $5,000 equipment on account with $1,000 paid in cash accruing a balance of $4,000 The company paid $750 for supplies . The company receives $4,100 of cash in exchange for services performed, along with billing $5,400 from the customer of services .The company paid $1,500 with cash on accounts payable 6. The company paid a$2,000 dividend .The company paid $800 for this month remt 8. The coempany 9.The company pays the carnings of employees in salaries of $3,000, 0. The company pays $300 on utilities account collects S$450 from a customer The stockholders equity incrcased $3.400. Which is calculated from assets minus liabilitics The net income is $$,400. Which is revenues maas expenses E3-5 The tabular s of transactions for Colaw C is presemted in E3-4 Propare an income statement and a rtained carnings statement for August and a cl balance sheet at August 31, 2014Explanation / Answer
Tabular analysis: Transaction Assets equals Liabilities Shareholder's Equity equals AP Common Stock Retained Earnings Cash Supplies AR Equipment equals Revenues Expenses 1 20000 equals 20000 2 -1000 5000 equals 4000 3 -750 750 equals 4 4100 5400 equals 9500 5 -1500 equals -1500 6 -2000 equals -2000 7 -800 equals -800 8 450 -450 equals 9 -3000 equals -3000 10 -300 equals -300 TOTAL 15200 750 4950 5000 equals 2500 20000 9500 -6100 Grand total 25900 equals 25900 RE = Net Income = 9500 - 6100 = 3400 Shareholder's Equity = common stock + RE = 20000 + 3400 = 23400 Classified Balance Sheet: Assets: Cash 15200 AR 4950 Supplies 750 Current Assets: 20900 Equipment 5000 Total Assets 25900 Liabilities and Shareholder's Equity: AP 2500 Current Liabilities 2500 Shareholder's Equity: Common Stock 20000 RE 3400 Total SH Eq. 23400 Total Liabi & SH Eq. 25900
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