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.
|
Cash |
+ |
Accounts
Receivable |
+ |
Supplies |
+ |
Office
Equipment |
= |
Accounts
Payable |
+ |
Stockholder's Equity |
| 1. |
+$15,000 |
|
|
|
|
|
|
|
|
|
+$15,000 |
Investment |
| 2. |
-2,000 |
|
|
|
|
|
+$5,000 |
|
+$3,000 |
|
|
|
| 3. |
-750 |
|
|
|
+$750 |
|
|
|
|
|
|
|
| 4. |
+4,600 |
|
+$3,700 |
|
|
|
|
|
|
|
+8,300 |
Service Revenue |
| 5. |
-1,500 |
|
|
|
|
|
|
|
-1,500 |
|
|
|
| 6. |
-2,000 |
|
|
|
|
|
|
|
|
|
-2,000 |
Dividends |
| 7. |
-650 |
|
|
|
|
|
|
|
|
|
-650 |
Rent Expense |
| 8. |
+450 |
|
-450 |
|
|
|
|
|
|
|
|
|
| 9. |
-4,900 |
|
|
|
|
|
|
|
|
|
-4,900 |
Salaries Expense |
| 10. |
|
|
|
|
|
|
|
|
+500 |
|
-500 |
Utilities Expense |
Instructions
(a) How much did stockholder's equity increase for the month?
$
(b) Compute the amount of net income for the month. (If a net loss, record amount using either a negative sign preceding the number eg -45 or parentheses eg (45).)
$