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.

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) $23,660 $23,660 Com. Stock (2) –1,700 $5,000 $3,300 (3) –590 $590 (4) 3,550 $5,500 $9,050 Serv. Rev. (5) –2,300 –2,300 (6) –2,870 –$2,870 Div. (7) –870 –$870 Rent Exp. (8) 380 –380 (9) –2,020 –2,020 Sal. Exp. (10) 300 –300 Util. Exp.

Your answer is correct. Prepare an income statement for August. COLAW COMPANY Income Statement For the Month Ended August 31, 2014 Dividends Expenses Net Income / (Loss) Retained Earnings, August 1 Retained Earnings, August 31 Revenues Total Expenses Total Revenues $ Dividends Expenses Net Income / (Loss) Retained Earnings, August 1 Retained Earnings, August 31 Revenues Total Expenses Total Revenues $     Dividends     Expenses     Net Income / (Loss)     Retained Earnings, August 1     Retained Earnings, August 31     Revenues     Total Expenses     Total Revenues Dividends Expenses Net Income / (Loss) Retained Earnings, August 1 Retained Earnings, August 31 Revenues Total Expenses Total Revenues $

Your answer is correct. Prepare a retained earnings statement for August. (List items that increase retained earnings first.) COLAW COMPANY Retained Earnings Statement For the Month Ended August 31, 2014 Dividends Expenses Net Income / (Loss) Retained Earnings, August 1 Retained Earnings, August 31 Revenues Total Expenses Total Revenues $ Add Less :  Dividends Expenses Net Income / (Loss) Retained Earnings, August 1 Retained Earnings, August 31 Revenues Total Expenses Total Revenues Add Less :  Dividends Expenses Net Income / (Loss) Retained Earnings, August 1 Retained Earnings, August 31 Revenues Total Expenses Total Revenues Dividends Expenses Net Income / (Loss) Retained Earnings, August 1 Retained Earnings, August 31 Revenues Total Expenses Total Revenues $

Your answer is correct. Prepare a classified balance sheet at August 31, 2014. (List current assets in order of liquidity.) COLAW COMPANY Balance Sheet August 31, 2014 Assets Current Assets Current Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Net Income / (Loss) Property, Plant and Equipment Revenues Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Stockholders' Equity $     Current Assets     Current Liabilities     Expenses     Intangible Assets     Long-term Investments     Long-term Liabilities     Net Income / (Loss)     Property, Plant and Equipment     Revenues     Stockholders' Equity     Total Assets     Total Current Assets     Total Current Liabilities     Total Expenses     Total Intangible Assets     Total Liabilities     Total Liabilities and Stockholders' Equity     Total Long-term Investments     Total Long-term Liabilities     Total Property, Plant and Equipment     Total Revenues     Total Stockholders' Equity $     Current Assets     Current Liabilities     Expenses     Intangible Assets     Long-term Investments     Long-term Liabilities     Net Income / (Loss)     Property, Plant and Equipment     Revenues     Stockholders' Equity     Total Assets     Total Current Assets     Total Current Liabilities     Total Expenses     Total Intangible Assets     Total Liabilities     Total Liabilities and Stockholders' Equity     Total Long-term Investments     Total Long-term Liabilities     Total Property, Plant and Equipment     Total Revenues     Total Stockholders' Equity $ Liabilities and Stockholders' Equity Current Assets Current Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Net Income / (Loss) Property, Plant and Equipment Revenues Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Stockholders' Equity $ Current Assets Current Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Net Income / (Loss) Property, Plant and Equipment Revenues Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Stockholders' Equity $     Current Assets     Current Liabilities     Expenses     Intangible Assets     Long-term Investments     Long-term Liabilities     Net Income / (Loss)     Property, Plant and Equipment     Revenues     Stockholders' Equity     Total Assets     Total Current Assets     Total Current Liabilities     Total Expenses     Total Intangible Assets     Total Liabilities     Total Liabilities and Stockholders' Equity     Total Long-term Investments     Total Long-term Liabilities     Total Property, Plant and Equipment     Total Revenues     Total Stockholders' Equity     Current Assets     Current Liabilities     Expenses     Intangible Assets     Long-term Investments     Long-term Liabilities     Net Income / (Loss)     Property, Plant and Equipment     Revenues     Stockholders' Equity     Total Assets     Total Current Assets     Total Current Liabilities     Total Expenses     Total Intangible Assets     Total Liabilities     Total Liabilities and Stockholders' Equity     Total Long-term Investments     Total Long-term Liabilities     Total Property, Plant and Equipment     Total Revenues     Total Stockholders' Equity $