Ecuacin contable y usuario de la informacin financiera Assets EX 1-13 Nature of transactions Terl West operates her own catering service. Summary financial data for July are pre sented 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 owner's equity, except transaction (5), affects net income. Llabilities + Owners Equity Accounts Ter West Terl West, Cash + Supplies + Land Payable + Drawing + Earned - Expenses Bal. 40,000 3,000 32,000 7,500 +71,800 +15.000 47,500 +1.100 Capital 117.500 71.900 15.000 -5.000 4000 -4.000 -1.5og Bal 40,300 2.500 97,000 4,500 117.500 -5.000 71800 49.000 a. Describe each transaction. b. What is the amount of the net increase in cash during the month c. What is the amount of the net increase in owner's 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? Catlogo de cuentas para el registro de transacciones Example Exercises Show 2-1 264 PE 2-1A Rules of debit and credit and normal balances State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (e) both debit and credit entries. Also indicate its normal balance. 1. Accounts Receivable 4. Rent Expense 2. Commissions Earned 5. Rent Revenue 3. Heidi Schmidt, Capital 6. Wages Payable