Otto Egan operates his own catering service. Summary financial data for August are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. 

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?
oO . How much of the net income for the month was retained in the business?

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Assets Liabilities + Cash Supplies + Land Bal. 27,000 3,000 100,000 Accounts Payable 15,000 Capital Retained Stock + Earnings Dividends + Earned - Expenses Stockholders' Equity Fees 25,000 90,000 1. +45,000 2. -20,000 +20,000 3. -16,000 45,000 -16,000 4. +3,000 + 3,000 5. 5,000 -5,000 6. -12,000 -12,000 7. -2,500 -2,500 Bal. 19,000 3,500 120,000 6,000 25,000 90,000 -5,000 45,000 -18,500