Pet Caterers, Inc., started the first year of operations with $3,500 in cash and common stock. During 2012, Pet Caterers earned $6,500 of revenue on account. The company collected $5,900 cash from accounts receivable and paid $3,115 cash for operating expenses. Enter the transactions into the accounting equation.
1. What happened to total assets (increase or decrease and by how much)?
2. What is the cash balance on December 31, 2012?
3. What is the total shareholders’ equity on December 31, 2012?
4. What is net income for the year?