Homework SourseHELP Thought I can figure this one out but got it wrong I ha
HELP! Thought I can figure this one out but got it wrong. I have one more attempt.
Exercise 3-4
A tabular analysis of the transactions made during August 2017 by Sandhill Co. during its first month of operations is shown below. Each increase and decrease in stockholders’ equity is explained.
Assets
Liabilities
Stockholders’ Equity
Retained Earnings
(1)
Com. Stock
(2)
(3)
(4)
Serv. Rev.
(5)
(6)
Div.
(7)
Rent Exp.
(8)
(9)
Salar. Exp.
(10)
Util. Exp.
(b) Determine how much stockholders’ equity increased for the month.
Increase in stockholders’ equity
(c) Compute the net income for the month.
The net income
| Assets | = | Liabilities | + | Stockholders’ Equity | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | + | A/R | + | Supp. | + | Equip. | = | Accounts Payable | + | Common Stock | + | Retained Earnings | |||||||
| Revenues | – | Expenses | – | Dividends | |||||||||||||||
| (1) | $15,700 | $15,700 | Com. Stock | ||||||||||||||||
| (2) | –1,300 | $5,000 | $3,700 | ||||||||||||||||
| (3) | –850 | $850 | |||||||||||||||||
| (4) | 4,300 | $6,400 | $10,700 | Serv. Rev. | |||||||||||||||
| (5) | –2,400 | –2,400 | |||||||||||||||||
| (6) | –2,600 | –$2,600 | Div. | ||||||||||||||||
| (7) | –870 | –$870 | Rent Exp. | ||||||||||||||||
| (8) | 420 | –420 | |||||||||||||||||
| (9) | –3,700 | –3,700 | Salar. Exp. | ||||||||||||||||
| (10) | 270 | –270 | Util. Exp. |
Solution
b) Calculate stockholder\'s equity increase for the month :
(c) Compute the net income for the month.
| Common stock | 15700 |
| Revenue | 10700 |
| Rent exp | (870) |
| Utilities exp | (270) |
| Salaries exp | (3700) |
| Dividend | (2600) |
| Increase in stockholder\'s equity | 18960 |
