An analysis of the transactions made by White Stripes & Co., a law firm, for the month of July is shown below. Each increase and decrease in stockholders' equity is explained.

Instructions

(a) Determine how much stockholders' equity increased for the month.

(b) Compute the amount of net income for the month.

Transcribed Image Text:

Assets Liab Stockholders' Equity Retained Earnings Cash Accounts Receivable + Supplies + Equipment = Accounts Payable + Com Stock + Rev. -Exp -Div. 1234567 1. +$15,000 +$15,000 2. - 2,000 +$5,000 +$3,000 3. 750 +$750 4. + 2,500 +$6,000 +$9,100 5. 1,500 - 1,500 2,500 7. 750 8. + 550 -550 9. - 3,500 10. + 500 + 500 Rev. -$2,500 Div. -$750 Rent. -$4,500 Sal. -500 Util.