Angela Howard operates her own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in stockholders' equity, except transaction (5), affects net income.

a. Describe each transaction.
b. What is the amount of the net decrease in cash during the month?
c. What is the amount of the net increase in stockholders' equity during the month?
d. What is the amount of the net income for the month?
e. How much of the net income for the month was retained in thebusiness?

Transcribed Image Text:

Assets Liabilities + Accounts Capital Retained Payable + Stock +Earning-Dividends +Earned-Expenses Stockholders' Equity Fees Cash + Supplies + Land Ba. 30,000 2,000 80,000 12,000 30,00 70,000 1. +33,000 2. 20,000 3. 24,000 4. 5.-3,000 6. 6,000 +33,000 +20,000 -24,000 +1,000 +1,000 -3,000 -6,000 -1,800 -1,800 33,000-25,800 Ba 10,000 1,200 100,000 7,000 30,000 70,000 -3,000