LO 2, 3 P2-64B. (Learning Objectives 2, 3: Analyze the impact of business transactions on the accounting equation and accounts) The following amounts summarize the financial position of Davis Computing, Inc., on September 30, 2018: Liabilities + Assets Accounts Receivable + Supplies 3,450 Accounts Payable Stockholders' Equity Common Retained Stock + Earnings 5,500 4,150 Cash + + + Equipment 11,700 Bal 2,400 7,900 During October 2018, Davis Computing completed these transactions: a. The company received cash of $3,500 and issued common stock. b. Performed services for a customer and received cash of $6,500. c. Paid $4,400 on accounts payable. d. Purchased supplies on account, $1,200. e. Collected cash from a customer on account, $1,700. f. Consulted on the design of a computer system and billed the customer for services ren- dered, $4,700. g. Recorded the following expenses for the month: (1) paid office rent, $1,800; (2) paid advertising, $550. h. Declared and paid a cash dividend of $2,700. Requirements 1. Analyze the effects of the preceding transactions on the accounting equation of Davis Computing, Inc. 2. Prepare the income statement of Davis Computing, Inc., for the month ended October 31, 2018. List expenses in decreasing order by amount. 3. Prepare the statement of retained earnings of Davis Computing, Inc., for the month ended October 31, 2018. 4. Prepare the balance sheet of Davis Computing, Inc., at October 31, 2018