Hello Everyone,

I have a simple question. But I Need the full answer please!

on -Excel file (Microsoft) or -Numbers (Apple)

Question:

P3-3A Mark Mader created a corporation providing legal services, Mark Mader Inc., on

July 1, 2007.

On July 31 the balance sheet showed:

Cash $4,000

Accounts Receivable $2,500

Supplies $500

Office Equipment $5,000

Accounts Payable $4,200

Common Stock $6,200

Retained Earnings $1,600.

During August the following transactions occurred.

1. Collected $1,500 of accounts receivable due from customers.

2. Paid $2,700 cash for accounts payable due.

3. Earned revenue of $6,400, of which $3,000 is collected in cash and the balance is due

in September.

4. Purchased additional office equipment for $2,000, paying $400 in cash and the balance

on account.

5. Paid salaries $1,400, rent for August $900, and advertising expenses $350.

6. Declared and paid a cash dividend of $700.

7. Received $2,000 from Standard Federal Bank; the money was borrowed on a 4-month

note payable.

8. Incurred utility expenses for the month on account $450.

Instructions

(a) Prepare a tabular analysis of the August transactions beginning with July 31 balances.

The column heading should be: Cash Accounts Receivable Supplies Office

Equipment Notes Payable Accounts Payable Common Stock Retained Earnings.

Include margin explanations for any changes in Retained Earnings.

(b) Prepare an income statement for August, a retained earnings statement for August,

and a classified balance sheet at August 31.