On September 1 of the current year, Maria Eds all established a business to manage rental property. She completed the following transactions during September:

a. Opened a business bank account with a deposit of $40,000 in exchange for capital stock.

b. Purchased supplies (pens, file folders, and copy paper) on account, $2,200.

c. Received cash from fees earned for managing rental property, $6,000.

d. Paid rent on office and equipment for the month, $2,700.

e. Paid creditors on account, $1,000.

f. Billed customers for fees earned for managing rental property, $5,000.

g. Paid automobile expenses (including rental charges) for month, $600, and miscellaneous expenses, $300.

h. Paid office salaries, $1,900.

i. Determined that the cost of supplies on hand was $1,300; therefore, the cost of sup-plies used was $900.

j. Paid dividends, $1,800.

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

2. Briefly explain why the stockholders€™ investments and revenues increased stockholders€™ equity, while dividends and expenses decreased stockholders€™ equity.

3. Determine the net income for September.

4. How much did September€™s transactions increase or decrease retained earnings?

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= Liabilities + Stockholders' Equity Assets Accounts Accounts Salaries Capital Stock Fees Rent Supplies Auto Misc. Cash + Receivable + Supplies = Payable + Dividends + Earned - Expense - Expense - Expense - Expense - Expense