An equation analysis of the transactions incurred by Wolfe Ltd. during August 2018 is shown below. Opening balances at July 31 are included as is a brief annotation beside each increase and decrease in shareholders' equity during August.

Instructions
(a) Provide an explanation for each of the above transactions during the month of August.
(b) Calculate net income for the month of August and retained earnings at August 31.
(c) Calculate the ending balances for total assets, total liabilities, and total shareholders' equity at August 31.

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Liabilities Shareholders' Equity Unearned Common Retained Earnings Cash + A/R + Sup. +Equipment= A/P + Revenue + Shares + Bal. + Rev.-Exp.-Div. July 31 Bal. +$6500 (1) 1,000 1,000 750 +$5,000 +$2,000 +$5,000 + $4,500 +$1,000 +$5,000 +4,000 +$750 (4 +4,100 5,400 +$9,500 Service revenue 2,000 1,000 4,800 (8) +5,000 $1,000 Dividends declared Operating expenses -$4,800 5,000 Interest expense Income tax expense (10) 880