Olga started a massage business under uses accrual-based accounting.

Transactions Jan. 2 Deposited $3,000 of personal money into the new business to get it started.

Jan. 3 Signed an office rental lease and paid Januarys rent of $600.

Jan. 9 Bought a $1,200 adjustable massage table on credit.

Jan. 18 Completed work for several clients and billed $900 of service revenue.

Jan. 25 Total payments received from customers, $500. Deposited payments in bank.

Jan. 26 Made a partial payment of $600 for the massage table purchased on credit.

Jan. 27 Made a $1,000 withdrawal of owners equity for personal purposes.

Jan. 30 Paid $100 of utilities for January.

Jan. 31 The massage table should last 10 years, so recorded one month or $10 of depreciation expense.

1. Use the information covered in the practice sets to determine the net income for January and the ending business capital (equity) at January 31.

2. Does the change in capital (equity) for the month represent a healthy pattern? Why or why not?