eri West operates her own catering service. Summary financial data for February 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. Assets = Liabilities + Stockholders' Equity Cash + Supplies + Land = Accounts Payable + Capital Stock + Retained Earnings - Dividends + Fees Earned - Expenses Bal. 32,300 4,200 80,800 8,700 43,600 65,000 1. +37,800 37,800 2. -16,200 +16,200 3. -28,100 -28,100 4. +1,600 +1,600 5. -2,200 -2,200 6. -7,800 -7,800 7. -3,200 -3,200 Bal. 15,800 2,600 97,000 2,500 43,600 65,000 -2,200 37,800 -31,300 a. (1) Select the description for transaction 1. a. (2) Select the description for transaction 2. a. (3) Select the description for transaction 3. a. (4) Select the description for transaction 4. a. (5) Select the description for transaction 5. a. (6) Select the description for transaction 6. a. (7) Select the description for transaction 7. b. What is the amount of the net decrease in cash during the month? Enter decrease as a positive number. $fill in the blank 8 c. What is the amount of the net increase in stockholders' equity during the month? $fill in the blank 9
Nature of Transactions
Teri West operates her own catering service. Summary financial data for February 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
| Assets | = | Liabilities + | Stockholders' Equity | ||||||||||||
| Cash + Supplies + Land | = | Accounts Payable | + | Capital Stock | + | - | Dividends | + | Fees Earned | - | Expenses | ||||
| Bal. | 32,300 | 4,200 | 80,800 | 8,700 | 43,600 | 65,000 | |||||||||
| 1. | +37,800 | 37,800 | |||||||||||||
| 2. | -16,200 | +16,200 | |||||||||||||
| 3. | -28,100 | -28,100 | |||||||||||||
| 4. | +1,600 | +1,600 | |||||||||||||
| 5. | -2,200 | -2,200 | |||||||||||||
| 6. | -7,800 | -7,800 | |||||||||||||
| 7. | -3,200 | -3,200 | |||||||||||||
| Bal. | 15,800 | 2,600 | 97,000 | 2,500 | 43,600 | 65,000 | -2,200 | 37,800 | -31,300 |
a. (1) Select the description for transaction 1.
a. (2) Select the description for transaction 2.
a. (3) Select the description for transaction 3.
a. (4) Select the description for transaction 4.
a. (5) Select the description for transaction 5.
a. (6) Select the description for transaction 6.
a. (7) Select the description for transaction 7.
b. What is the amount of the net decrease in cash during the month? Enter decrease as a positive number.
$fill in the blank 8
c. What is the amount of the net increase in stockholders' equity during the month?
$fill in the blank 9
d. What is the amount of the net income for the month?
$fill in the blank 10
e. How much of the net income for the month was retained in the business?
$fill in the blank 11
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