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planations for any changes in Retained Earnings. are an income statement for the month of May 2022. 6. Prer a classified balance sheet at May 31, 2022. STOCK Retained Earnings + Revenues - Expenses - Dividends entre arnings GLS Excel PS .2), AP Bindy Crawford created a corporation providing legal se Inc., on July 1, 2022. On July 31 the balance sheet showed Cash $4,000, Accounts Recen corporation providing legal services, Bindy Crawford Supplies 5500, Equipment $5,000, Accounts Payable $4,200, Common Stock $6,200, and Earnings $1.600. During August, the following transactions occurred. Aug. 1 Collected $1,100 of accounts receivable due from customers. 4 Paid $2,700 cash for accounts payable due. Performed services worth $5,400, of which $3,600 is collected in cash and the balance is due in September 15 Purchased additional office equipment for $4,000, paying $700 in cash and the balance on account. 19 Paid salaries $1,400, rent for August $700, and advertising expenses $350. 000, Accounts Receivable $2,500, ommon Stock $6,200, and Retained 23 26 Paid a cash dividend of $700. Borrowed $5,000 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $380. 31 ,150 Instructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column heading should be Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues - Expenses - Dividends. 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. 570 70

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