The following account summarizes the financial position of Rodriguez Resources, Inc., on May 31, 2012:

May 31, 2012 financial position:

Assets = Liabilities + Stockholders Equity

Accounts + Common + Retained

Cash + Receivable + Supplies = Payable Stock Earnings + Land

Bal

Cash..............($1,200)

Accounts Receivable .......($1,500)

Supplies ............. ($0)

Land ............. ($12,200)

Accounts Payable ........................... ($7,800)

Common Stock ............................... ($4,400)

Retained Earnings ........ ($2,750)

Transactions during June 2012, Rodriguez Resources completed these transactions:

a. The business received cash of $9,400 and issued common stock

b. Performed services for customer and received cash of $6,000.

c. Paid $4,500 on accounts payable.

d. Purchased supplies on account $1,300.

e. Collected cash from a customer on account, $300.

f. Consulted on the design of a computer system and billed the customer for services rendered $2,500.

g. Recorded the following expenses for the month (1) paid office rent-$800; (2) paid advertising $200.

Declared and paid a cash dividend of $2,200.

Requirements:

1. analyze the effects of the transactions on the accounting equation of Rodriguez Resources, Inc

2. Prepare the income statement of Rodriguez Resources, Inc., for the month ended June 30, 012. List expenses in decreasing order by amount.

3. Prepare the entity's statement of retained earnings the month ended June 30, 2012.

4. Prepare a balance sheet of Rodriguez Resources Inc., at June 30, 2012. (Use parentheses or a minus sign when decreasing accounts.)