Murray Kiser operates his own catering service. Summary financial data for February 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 stockholders' 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 stockholders' 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 the business?

Assets = Liabilities Accounts Cash Supplies + Land = Payable + Stockholders' Equity Capital Retained Fees Stock Earnings Dividends + Earned Expenses Bal. 30,000 4,000 75,000 8,000 50,000 51,000 123456 1. +35,000 -15,000 +15,000 3. -26,000 35,000 -26,000 4. +1,500 +1,500 5. -2,000 -2,000 6. -7,200 -7,200 7. -3,000 -3,000 Bal 14,800 2,500 90,000 2,300 50,000 51,000 -2,000 35,000 29,000