An analysis of the transactions made by J. L. Kang & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholders’

equity is explained.

Exercises SY Analyze the effect of transactions.

(LO 6, 7)

Analyze the effect of transactions on assets, liabilities, and stockholders’

equity.

(LO 6, 7)

Analyze transactions and compute net income.

(LO 7, 8)

Assets = Liabilities + Stockholders’ Equity Accounts : : _ Accounts , Common Retained Earnings Cees Receivable ” SUDDI foe eaUp cies Payable Stock Rev. — Exp. — Div.

1. +$15,000 +$15,000 ee O00) +$5,000 +$3,000 3 —750 +$750 4. +4,600 +$4,500 +$9,100 Service Revenue Dee 1500 S500 6. —2,000 —$2,000 7 —650 —$650 Rent Expense 8 +450 —450 9, —3,900 —3,900 Sal./Wages Expense 10. +500 —500 Utilities Expense Instructions

(a) (> Describe each transaction that occurred for the month.

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

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