Neal Hastings established Ember Services, P.C., a professional corporation, on January 1 of the current year. Ember Services offers financial planning advice to its clients. The effect of each transaction on the balance sheet and the balances after each transaction for January 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 forJanuary?

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Liabilities Stockholders' Equity Capital +20,000 Retained Cash ReceivableSuppliesPayable Stock Earnings Accounts Accounts +20,000 +900 +900 20,000 -775 Ba 19,225 +11,500 Bal. 30,725 -7,500 Ba 23,225 20,000 -775 900 125 20,000 d. +11,500 11,500 -7,500 4,000 -625 3,375 +3,000 6,375 -1,000 5,375 900 125 20,000 125 900 -625 275 20,000 Ba 23,225 125 20,000 +3,000 Ba. 23,225 -1,000 3,000 275 125 20,000 h. Ba 22,225 3,000 275 125 20,000