A tabular summary of the transactions for Star & Co., an accounting firm, for its first month of operations, July 2024, follows:

Instructions

a. Describe each transaction that occurred in the month.

b. Calculate the amount of profit for the month.

c. Calculate the increase in owner’s equity for the month.

Transcribed Image Text:

Accounts Prepaid Cash + Receivable + Insurance + Equipment 1 $18,000 2 -4,000 3 -750 4 3,500 5 -2,000 6 -3,300 7 -800 8 1,350 9 -2,700 10 $4,800 -1,350 $750 $6,000 8,000 = Accounts B. Star, B. Star, Payable + Capital Drawings + Revenues - $24,000 $4,000 -2,000 420 -3,300 $8,300 Expenses -$800 Rent -2,700 Salaries -420 Utilities