Stacy-Ann KeIly owns and operates KeIly's Furniture Emporium, Inc. The balance sheet totals for assets, liabilities, and stockholders' equity at August 1, 2016, are as indicated. Described here are several transactions entered into by the company throughout the month of August.

Required:

a. Indicate the amount and effect (+ or -) of each transaction on total assets, total liabilities, and total stockholders' equity, and then compute the new totals for each category. The first transaction is provided as an illustration.

b. What was the amount of net income (or loss) during August? How much were total revenues and total expenses during August?
c. What were the net changes during the month of August in total assets, total liabilities, and total stockholders' equity?
d. Explain to Stacy-Ann Kelly which transactions caused the net change in her stockholders' equity during August.
e. Explain why dividend payments are not an expense, hut interest is an expense.
f. Explain why the money borrowed from the hank increased assets but did not increase net income.
g. Explain why paying oil accounts payable and collecting accounts receivable do not affect net income.

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Stockholders AssetsLiabilities Equity $700,000 $550,000 +24.000 24.000 $724,000 $574,000 $150,000 August 1, 2016, totals August 3, borrowed $24,000 incash from the bank. New totals $150,000 August 7, bought merchandise inventory valued at $38,000 on account. New totals August 10, paid $14,000 cash for operatng expenses. . New totals August 14, received $100,000 in cash from sales of merchandise that had cost $66,000 August 17, paid $28,000 owed on accounts payable August 21, collected $34,000 of accounts receivable August 24, repaid $20,000 to the bank plus $400 New totals New totals New totals nterest. New totals August 29, paid Stacy-Ann Kelly a cash dividend of $10,000 New totals