How much of the Net Income for the month was retained in the business?

Nature of Transactions Teri West operates her own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effe Eransaction on the equation. Each increase and decrease in stockholders equity, except transaction (5), affects net income. Assets = Liabilities + Stockholders' Equity Cash + Supplies + Land = Accounts Payable + Capital Stock + Retained Earnings Dividends Fees Earned Expenses Bal: 38,600 5,000 96,500 10,400 64,700 65,000 1. +45,200 45,200 2. -19,300 +19,300 . -33,600 -33,600 +1,900 +1,900 -2,600 -2,600 -9,300 -9,300 -3,900 -3,900 al. 19,000 3,000 115,800 -37,500 3,000 64,700 -2,600 45,200 65,000 (1) Select the description for transaction 1