Question
An analysis of the transactions made by Peat Deloitte & Co., a certified public accounting firm, for the month of August is shown below. The
An analysis of the transactions made by Peat Deloitte & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $560for rent, $4,800for salaries and wages, and $400for utilities.
Cash
+Accounts
Receivable
+Supplies
+Equipment
=Accounts
Payable
+Owner's
Capital
-Owner's
Drawings
+Revenues
-Expenses
1.+$15,000+$15,0002.-2,000+$5,000+$3,0003.-750+$7504.+4,000+$4,500+$8,5005.-1,500-1,5006.-2,000-$2,0007.-560-$5608.+450-4509.-4,800-4,80010.+400-400
(b)
Determine how much owner's equity increased for the month.
Net increase in owner's equity$
(c)
Compute the amount of net income for the month.
Net income
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