The following amounts summarize the financial position of Ready Resources, Inc., on May 31, 20X8:…

The following amounts summarize the financial position of Ready Resources, Inc., on May 31, 20X8:…

The following amounts summarize the financial position of Ready Resources, Inc., on May 31, 20X8: During June 20X8, Ready Resources completed these transactions: a. The business received cash of $5,000 and issued common stock. b. Performed services for a customer and received cash of $6,700. c. Paid $5,000 on accounts payable. d. Purchased supplies on account, $1,000. e. Collected cash from a customer on account, $500. f. Consulted on the design of a computer system and billed the customer for services rendered, $2,400. g. Recorded the following business expenses for the month: (1) paid office rent-$900; (2) paid advertising-$300. h. Declared and paid a cash dividend of $1,800. Required 1. Analyze the effects of the preceding transactions on the accounting equation of Ready Resources, Inc. Adapt the format of Exhibit 2-1, Panel B. 2. Prepare the income statement of Ready Resources, Inc., for the month ended June 30, 20X8. List expenses in decreasing order by amount. 3. Prepare the entity s statement of retained earnings for the month ended June 30, 20X8. 4. Prepare the balance sheet of Ready Resources, Inc., at June 30, 20X8.

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