Question- A tabular analysis of the transactions made during August 2014 by Colaw Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained.
| Assets |
= |
Liabilities |
+ |
Stockholders' Equity |
| Cash |
+ |
A/R |
+ |
Supp. |
+ |
Equip. |
= |
Accounts Payable |
+ |
Common Stock |
+ |
Retained Earnings |
| Revenues |
- |
Expenses |
- |
Dividends |
| (1) |
$15,790 |
$15,790 |
Com. Stock |
| (2) |
-1,600 |
$5,100 |
$3,500 |
| (3) |
-660 |
$660 |
| (4) |
5,010 |
$5,870 |
$10,880 |
Serv. Rev. |
| (5) |
-2,260 |
-2,260 |
| (6) |
-2,160 |
-$2,160 |
Div. |
| (7) |
-730 |
-$730 |
Rent Exp. |
| (8) |
390 |
-390 |
| (9) |
-3,720 |
-3,720 |
Salar. Exp. |
| (10) |
310 |
-310 |
Util. Exp. |
Determine how much stockholders' equity increased for the month.
Compute the net income for the month.