Reference no: EM132619607

Crazy Bob's Repair Shop Ltd was started on 1 May. Here is a summary of the May transactions:

1. Shareholders invested $16 000 cash in the company in exchange for shares.

2. Purchased equipment for $5000 cash.

3. Paid $400 cash for May office rent.

4. Paid $500 cash for supplies.

5. Incurred $550 of advertising costs in the North Shore Times on account.

6. Received $4100 in cash from customers for repair service.

7. Declared and paid a $500 cash dividend.

8. Paid part-time employee salaries, $1200.

9. Paid electricity bill, $140.

10. Provided repair service on account to customers, $400.

11. Collected cash of $120 for services invoiced in transaction (10).

Required

Question (a) transaction analysis using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Share Capital, and Retained Earnings. Revenue is called Service Revenue. Include in the margin explanations for any changes in Retained Earnings.

Question (b) From an analysis of the column Retained Earnings, calculate the profit or loss for May