ates his 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 owner's equity, except transaction (5), affects net income. Assets = Liabilities + Owner's Equity Cash + Supplies + Land = Accounts Payable + Kristoff
Nature of Transactions
Teri West operates his 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 owner's equity, except transaction (5), affects net income.
| Assets | = | Liabilities + | Owner's Equity | ||||||||||
| Cash + Supplies + Land | = | Accounts Payable | + | Kristoff Walker, Capital | - | Kristoff Walker, Drawing | + | Fees Earned | - | Expenses | |||
| Bal. | 27,000 | 3,500 | 67,500 | 7,300 | 90,700 | ||||||||
| 1. | +31,600 | +31,600 | |||||||||||
| 2. | -13,500 | +13,500 | |||||||||||
| 3. | -23,500 | -23,500 | |||||||||||
| 4. | +1,400 | +1,400 | |||||||||||
| 5. | -1,800 | -1,800 | |||||||||||
| 6. | -6,500 | -6,500 | |||||||||||
| 7. | -2,700 | -2,700 | |||||||||||
| Bal. | 13,300 | 2,200 | 81,000 | 2,200 | 90,700 | -1,800 | 31,600 | -26,200 |
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?
$fill in the blank 8
c. What is the amount of the net increase in owner's 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
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
