Baxter Pauline established Summit Services, P.C., a professional corporation, on December 1 of the current year. Summit

Question:

Baxter Pauline established Summit Services, P.C., a professional corporation, on December 1 of the current year. Summit Services offers financial planning advice to its clients. The effect of each transaction on the balance sheet and the balances after each transaction for December are as follows. Each increase or decrease in stockholders’ equity, except transaction (h), affects net income.

a. Describe each transaction.

b. What is the amount of the net income for December? Discuss.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...