On May 1 Marty s Repair Shop Inc commenced operations

The #8502
On May 1, Marty's Repair Shop, Inc. commenced operations. The following transactions were
completed duringthe month:1. Issued common shares for $28,000 cash.2. Paid $1,280 for May
offi ce rent.3. Purchased equipment for $16,000, paying $4,000 cash and signing a bank loan
payable for the balance.4. Purchased supplies on account, $700.5. Received $4,200 from
customers for repair services provided.6. Paid for supplies purchased in transaction 4.7. Paid
May telephone bill of $200.8. Provided repair services on account to customers, $3,600.9. Paid
employee salaries, $2,000.10. Received $700 in advance for repair services to be provided next
month.11. Collected $1,600 from customers for services billed in transaction 8.12. Paid $500
dividends to shareholders.13. Paid $80 of interest on the bank loan obtained in transaction 3.14.
Paid income tax of $600.Instructions(a) Prepare a tabular analysis of the effects of the above
transactions on the expanded accounting equation.(b) Calculate total assets, liabilities, and
shareholders' equity at the end of the month and total profit for the month.View Solution:
On May 1 Marty s Repair Shop Inc commenced operations The

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