Blue Sky Window Washing Inc. was started on May 1. Here is a summary of the May transactions.
1 Stockholders invested cash in the company in exchange for common stock - $16,000
2 Purchased equipment for cash - $7,000
3 Paid cash for May office rent - $700
4 Paid cash for supplies - $400
5 Purchased advertising in the Beacon News on account - $550
6 Received $5,800 in cash from customers for service.
7 Declared and paid a cash dividend - $500
8 Paid part-time employee salaries - $1,700
9 Paid utility bills - $140
10 Provided service on account to customers - $500
11 Collected cash of $240 for services billed in transaction (10).
(a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings. Revenue is called Service Revenue. Include margin explanations for any changes in Retained Earnings.
(b) From an analysis of the column Retained Earnings, compute the net income or net loss for May.
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This solution provide calculations in Excel for table analysis of transactions and computations for net income and net loss.