Nature of Transactions

Kristoff Walker operates his own catering service. Summary financial data for February are presented 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.

Assets = Liabilities + Owner's Equity Cash + Supplies + Land = Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned - Expenses Bal. 34,500 4,500 86,300 9,300 116,000 1. +40,400 +40,400 2. -17,300 +17,300 3. -30,000 -30,000 4. +1,700 +1,700 5. -2,300 -2,300 6. -8,300 -8,300 7. -3,500 -3,500 Bal. 17,000 2,700 103,600 2,700 116,000 -2,300 40,400 -33,500

b. What is the amount of the net decrease 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? $