Otto Egan operates his own catering service. Summary financial data for August 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.

a. Describe each transaction.
b. What is the amount of net decrease in cash during the month?
c. What is the amount of net increase in owner€™s equity during the month?
d. What is the amount of the net income for the month?
e. How much of the net income for the month was retained in thebusiness?

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Assets -Liabilities Owner's Equity Accounts Otto Egan Otto Egan, Fees Cash Supplies Land PayableC apitalDrawing Earned Expenses Ba 27,000 3,000 100,000 15,000 15,000 1.45,000 2.-20,000 -16,000 45,000 +20,000 -16,000 +3,000 +3,000 5. - 5,000 -12,000 -5,000 -12,000 -2,500 45,000 -18,500 -2,500 .000 5,000 Ba 19,000 3,500 20,000 -5,000