An analysis of the transactions made by Rodriguez & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in owner's equity is explained.

Instructions
(a) Describe each transaction that occurred for the month.
(b) Determine how much owner's equity increased for the month.
(c) Compute the amount of net income for the month.

Transcribed Image Text:

Owner's Equity Cash + Receivable + Supplies + Equipment = Payable +-Rodriguez, Capital 1. +$12,000 2 2,000 3.-750 4. +2,600 $3,700 .-1,500 6 2,000 $12,000 Investment +$5,000 S3,000 +S750 +6,300 Service Revenue -1,500 -2,000 Drawings -650 -650 Rent Expense 8. +450 9.2,900 -450 -2,900 Sal/Wag. Expense 10. +500 -500 Utilities Expense