A Prepare a tabular analysis of the transactions Revenue is

A: Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction causes a decrease in Assets, Liabilities or Stockholders\' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

B: From an analysis of the Retained Earnings columns, compute the net income or net loss for May. (Income Statement)

Fredonia Repair Inc. was started on May 1. A summary of May transactions is presented below.

Collected cash of $100 for services billed in transaction (10)

1.		Stockholders invested $10,000 cash in the business in exchange for common stock.
2.		Purchased equipment for $4,000 cash.
3.		Paid $200 cash for May office rent.
4.		Paid $300 cash for supplies.
5.		Incurred $150 of advertising costs in the Beacon News on account.
6.		Received $3,700 in cash from customers for repair service.
7.		Declared and paid a $1,000 cash dividend.
8.		Paid part-time employee salaries $800.
9.		Paid utility bills $120.
10.		Performed repair services worth $880 on account.
11.		Collected cash of $100 for services billed in transaction (10)

Solution

Assets Liability + Equity Date Cash + Accounts Receivable + Supplies + Equipment = Accounts payable + Common stock + Retained Earnings 1 10000 10000 2 -4000 4000 3 -200 -200 4 -300 300 5 150 -150 6 3700 3700 7 -1000 -1000 8 -800 -800 9 880 880 10 100 -100 11 -120 -120 7380 780 300 4000 150 10000 2310 INCOME STATEMENT Revenues: Service revenue 4580 Expenses: Salaries and wages expense 800 Rent expense 200 Avertising expense 150 Utilities expense 120 Total expenses 1270 Net income 3310