The following amounts summarize the financial position of Rodriguez Computing, Inc., on September 30, 2016: During October

Question:

The following amounts summarize the financial position of Rodriguez Computing, Inc., on September 30, 2016:

During October 2016, Rodriguez Computing completed these transactions:
a. The business received cash of $3,800 and issued common stock.
b. Performed services for a customer and received cash of $6,000.
c. Paid $4,300 on accounts payable.
d. Purchased supplies on account, $500.
e. Collected cash from a customer on account, $2,000.
f. Consulted on the design of a computer system and billed the customer for services rendered, $4,000.
g. Recorded the following business expenses for the month: (1) paid office rent-$1,300; (2) paid advertising-$700
h. Declared and paid a cash dividend of $2,800.
Requirements
1. Analyze the effects of the preceding transactions on the accounting equation of Rodriguez Computing, Inc.
2. Prepare the income statement of Rodriguez Computing, Inc., for the month ended October 31, 2016. List expenses in decreasing order by amount.
3. Prepare the entity's statement of retained earnings for the month ended October 31, 2016.
4. Prepare the balance sheet of Rodriguez Computing, Inc., at October 31, 2016.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...