An analysis of the transactions made by Monty Corp., a certified public accounting firm, for the month of August, its first month of operations is shown below.
Each increase and decrease in stockholders' equity is explained.
a. Describe each transaction that occurred for the month (Provide the explanation for each transaction)
b. Determine how much stockholders' equity increased for the month.
c. Compute the amount of net income for the month.
CREATE A INCOME STATEMENT, RETAINED EARNINGS STATEMENT, BALANCE SHEET, AND STATEMENT OF CASH FLOWS BASED OFF THE INFORMATION IN THE CHART BELOW:
Assets = Liabilities + Stockholders’ Equity
Cash + Accounts
Receivable +Supplies +Equipment=Accounts+Common+Retained Earnings
Payable Stock
= + +
Revenues–Expenses–Dividend
1. $15,900 $15,900
2. –4,000 $6,000 $2,000
3. –800 $800
4. 5,600 $3,700 $9,300
Service Revenue
5. –1,400 –1,400
6. –1,600 $1,600
7. –750 –$750
Rent Expense
8. 500 –500
9.–3,800 –3,800
Salaries/Wages Expense
10. 450 –450
Utilities Expense
Answers: 1
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An analysis of the transactions made by Monty Corp., a certified public accounting firm, for the mon...
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