Question - An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholder's equity is explained.
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Cash
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+ Accounts Receivable
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+ Supplies
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+ Office Equipment
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= Accounts Payable
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+ Stockholder's Equity
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1.
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+$15,000
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+$15,000 Investment
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2.
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-2,000
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+$5,000
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+$3,000
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3.
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-750
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+$750
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4.
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+4,600
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+$3,700
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+8,300 Service Revenue
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5.
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-1,500
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-1,500
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6.
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-2,000
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-2,000 Dividends
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7.
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-650
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-650 Rent Expense
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8.
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+450
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-450
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9.
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-4,900
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-4,900 Salaries Expense
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10.
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+500
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-500 Expense
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Instructions -
(a) How much did stockholder's equity increase for the month?
(b) Compute the amount of net income for the month.