Nature of Transactions Teri West operates her 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 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 36,300 4,700 90,800 9,800 57,000 65,000 1 42,500 42,500 2 18,200 18,200 3 31,600 31,600 4 1,800 1,800 5 2,400 2,400 6 8,700 8,700 7 3,600 3,600 Bal 17,900 2,900 109,000 2,900 57,000 65,000 2,400 42,500 35,200 a (1) Select the description for transaction 1 Paid cash dividends Payment of cash to creditors Payment of cash for expenses Provided catering services for cash Purchase of land for cash Purchase of supplies on account Recognition of cost of supplies used Provided catering services for cash a (2) Select the description for transaction 2 Paid cash dividends Payment of cash to creditors Payment of cash for expenses Provided catering services for cash Purchase of land for cash Purchase of supplies on account Recognition of cost of supplies used Purchase of land for cash a (3) Select the description for transaction 3 Paid cash dividends Payment of cash to creditors Payment of cash for expenses Provided catering services for cash Purchase of land for cash Purchase of supplies on account Recognition of cost of supplies used Payment of cash for expenses a (4) Select the description for transaction 4 Paid cash dividends Payment of cash to creditors Payment of cash for expenses Provided catering services for cash Purchase of land for cash Purchase of supplies on account Recognition of cost of supplies used Purchase of supplies on account a (5) Select the description for transaction 5 Paid cash dividends Payment of cash to creditors Payment of cash for expenses Provided catering services for cash Purchase of land for cash Purchase of supplies on account Recognition of cost of supplies used Paid cash dividends a (6) Select the description for transaction 6 Paid cash dividends Payment of cash to creditors Payment of cash for expenses Provided catering services for cash Purchase of land for cash Purchase of supplies on account Recognition of cost of supplies used Payment of cash to creditors a (7) Select the description for transaction 7 Paid cash dividends Payment of cash to creditors Payment of cash for expenses Provided catering services for cash Purchase of land for cash Purchase of supplies on account Recognition of cost of supplies used Recognition of cost of supplies used 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

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Nature of Transactions Teri West operates her own catering service. Summary financial data for February are presented in equation form as follows. Each line designated

Nature of Transactions

Teri West operates her 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 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.	36,300	4,700	90,800		9,800		57,000		65,000
1.	+42,500												42,500
2.	-18,200		+18,200
3.	-31,600														-31,600
4.		+1,800			+1,800
5.	-2,400										-2,400
6.	-8,700				-8,700
7.		-3,600													-3,600
Bal.	17,900	2,900	109,000		2,900		57,000		65,000		-2,400		42,500		-35,200

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

Paid cash dividends.Payment of cash to creditors.Payment of cash for expenses.Provided catering services for cash.Purchase of land for cash.Purchase of supplies on account.Recognition of cost of supplies used.Provided catering services for cash.

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