P1.1A (LO 4), AP Fredonia Repair Inc. was started on May 1. A summary of May transactions is presented as follows. 1. Stockholders invested $10,000 cash in the business in exchange for common stock. 2. Purchased equipment for $5,000 cash. 3. Paid $400 cash for May office rent. 4. Paid $300 cash for supplies. 5. Incurred $250 of advertising costs in the Beacon News on account. 6. Received $4,700 in cash from customers for repair service. 7. Declared and paid a $700 cash dividend. 8. Paid part-time employee salaries $1,000. 9. Paid utility bills $140. 10. Performed repair services worth $1,100 on account. 11. Collected cash of $120 for services billed in transaction (10). Check figures provide a key number to let you know you are on the right track. Instructions a. Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in stockholders' equity. Revenue is called Service Revenue. a. Total assets $13,560 b. From an analysis of the Retained Earnings columns, compute the net income or net loss for May. b. Net income $4,010 Analyze transactions and prepare income statement, retained earnings statement, and balance sheet.