Nature of Transactions

Teri West operates his 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 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. $31,4004,10078,5008,500105,500$

$1.+36,700+36,700$

$2.-15,700+15,700$

$3.-27,300-27,300$

$4.+1,600+1,600$

$5.-2,100-2,100$

$6.-7,500-7,500$

$7.-3,100-3,100$

Bal. $15,5002,60094,2002,600105,500-2,10036,700-30,400$

b$.$ What is the amount of the net decrease in cash during the month?

$$15,900$

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?