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 effect of a transaction 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.	26,300	3,400	65,800		7,100		23,400		65,000
1.	+30,800												30,800
2.	-13,200		+13,200
3.	-22,900														-22,900
4.		+1,300			+1,300
5.	-1,800										-1,800
6.	-6,300				-6,300
7.		-2,600													-2,600
Bal.	12,900	2,100	79,000		2,100		23,400		65,000		-1,800		30,800		-25,500

a. (1) Select the description for transaction 1.

a. (2) Select the description for transaction 2.

a. (3) Select the description for transaction 3.

a. (4) Select the description for transaction 4.

a. (5) Select the description for transaction 5.

a. (6) Select the description for transaction 6.

a. (7) Select the description for transaction 7.

b. What is the amount of the net decrease in cash during the month? Enter decrease as a positive number. $fill in the blank 8

c. What is the amount of the net increase in stockholders' equity during the month? $fill in the blank 9

d. What is the amount of the net income for the month? $fill in the blank 10

e. How much of the net income for the month was retained in the business? $fill in the blank 11