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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
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 Cash + Supplies + Land = Liabilities + Stockholders' Equity = Accounts Payable + Capital Stock + Retained Earnings - Dividends + Fees Earned - Expenses 7,800 31,700 65,000 33,700 Bal. 28,800 3,700 72,000 1. +33,700 2. -14,400 +14,400 3. -25,100 -25,100 4. +1,400 +1,400 5. -1,900 -1,900 6. -6,900 -6,900 7. -2,900 -2,900 Bal 14,200 2,200 86,400 2,300 31,700 65,000 -1,900 33,700 -28,000 a. (1) Select the description for transaction 1. a. (2) Select the description for transaction 2. a. (3) Select the description for transaction 3
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