Question: Baxter Pauline established Summit Services, P.C., a professional corporation, on December 1 of the current year. Summit Services offers financial planning advice to its clients.

Baxter Pauline established Summit Services, P.C., a professional corporation, on December 1 of the current year. Summit Services offers financial planning advice to its clients. The effect of each transaction on the balance sheet and the balances after each transaction for December are as follows. Each increase or decrease in stockholders’ equity, except transaction (h), affects net income.

a. Describe each transaction.

b. What is the amount of the net income for December? Discuss.

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a Transaction a Issued capital stock in exchange for cash 45000 b Purchased ... View full answer

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