A tabular analysis of the transactions made during August 2025 by Wolfe Company during its first month of operations is shown as follows. Each increase and decrease in stockholders’ equity is explained.

Instructionsa. Describe each transaction.b. Determine how much stockholders’ equity increased for the month.c. Compute the net income for the month.

Transcribed Image Text:

Cash 1. +$20,000 2. 3. 4. 5. 6. 7. 8. 9. 10. -1,000 -750 +4,100 -1,500 -2,000 -800 +450 -3,000 Assets + A/R +$5,400 -450 + Supp. + Equip. = +$750 = +$5,000 Liabilities + Accounts Payable + +$4,000 -1,500 +300 Common Stock + +$20,000 Stockholders' Equity Rev. +$9,500 Retained Earnings Exp. - $ 800 -3,000 -300 Div. -$2,000 Serv. Rev. Rent Exp. Salar. Exp. Util. Exp.