Problem 3-5 Kingbird, Inc. was started on May 1. A summary of May transactions is presented below. 1. 2. 3. 4. 5. 6. Stockholders invested $16,500 cash in the business in exchange for common stock. Purchased equipment for $5,000 cash. Paid $400 cash for May office rent. Paid $700 cash for supplies. Incurred $300 of advertising costs in the Beacon News on account. Received $5,000 in cash from customers for performing repair service. Paid a $1,200 cash dividend. Paid part-time employee salaries $1,200. Paid utility bills $160. Performed repair services worth $1,040 on account. Collected cash of $130 for services billed in transaction (10). 7. 8. 9. 10. 11. Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets KINGBIRD, INC. Liabilities Accounts Stockholders' Equity Retained Earnings Accounts Common Cash + Receivable + Supplies + Equipment Payable + Stock + Revenues Expenses Dividends 1. $ $ $ $ $ $ $ $ $ 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. $ $ $ $ $ $ $ From an analysis of the Retained Earnings columns, compute the net income or net loss for May. KINGBIRD, INC. Income Statement $ v $ $ SHOW LIST OF ACCOUNTS