Teri West operates her own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in stockholders' equity, except transaction (5), affects net income.

a. Describe each transaction.
b. What is the amount of the net increase in cash during the month?
c. What is the amount of the net increase in stockholders' equity during the month?
d. What is the amount of the net income for the month?
e. How much of the net income for the month was retained in the business?

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Assets -Liabilities + Stockholders' Equity Accounts Common Retained Fees Cash + Supplies + Land = Payable+ Stock Earnings- Dividends +Earned-Expenses Bal 40,000 3,000 82,000 7,500 1. +71,800 2. 15,000 3. 47,500 50,000 67,500 +71,800 +15,000 -47,500 +1,100 +1,100 5.-5,000 6. 4,000 -5,000 -4,000 1,500 71,800 -49,000 -1,500 Ba 40,300 2,600 97,000 4,600 50,000 67,500 -5,000