Refer to the Summary Problem, specifically the unadjusted trial balance.

Required

1. Write the company’s accounting equation and label each element as a debit amount or a credit amount. If you use $28,500 for the owner’s equity, why is the accounting equation out of balance?

2. Write the equation to compute Wawa Cottage Management Services’s net income or net loss for March 2022. Indicate which element is a debit amount and which element is a credit amount. Does net income represent a net debit or a net credit? Does net loss represent a net debit or a net credit?

3. How much did the owner, Lenni Champlain, withdraw during March 2022? Did the withdrawal represent a debit amount or a credit amount?

4. Considering both the net income (or net loss) and withdrawal for March 2022, by how much did the company’s owner’s equity increase or decrease? Was the change in owner’s equity a debit amount or a credit amount?

Data from Summary Problem

The unadjusted trial balance of Wawa Cottage Management Services on March 1, 2022, lists the company’s assets, liabilities, and owner’s equity on that date.