A tabular analysis of the transactions made during August 2017 by Wolfe Company Analyze transactions and during its first month of operations is shown below. Each increase and decrease in stock- compute net income.

holders’ equity is explained.

Instructions

(a) Describe each transaction.

(b) Determine how much stockholders’ equity increased for the month.

(c) Compute the net income for the month.

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Cash 1. +$20,000 Assets = Liabilities Stockholders' Equity Retained Earnings Accounts Common A/R + Supp. + Equip. = Payable Stock + Rev. +$20,000 +$4,000 2. -1,000 +$5,000 3. -750 +$750 4. +4,100 +$5,400 5. -1,500 6. -2,000 7. -800 8. +450 -450 9. -3,000 10. -1,500 +300 +$9,500 Exp. Div. Com. Stock Serv. Rev. -$2,000 Div. -$ 800 Rent Exp. -3,000 -300 Salar. Exp. Util. Exp.