Ted Johnson started a realty business on April 1^st. The following business activities occurred during the first month of operations. Record the business transactions using the worksheet template in Part 2. If an activity is not to be recorded, indicate by stating no entry.

1. Opened a business account with a deposit of $75,000 in exchange for common stock.

b. Purchased supplies on account, $11,200.

c. Earned a commission on the sale of a house of $15,000 in cash.

d. Paid office rent of $1,500 for the month.

e. Paid creditor on account $6,000.

f. A client hires Ted to sell her house for a fixed $12,500 commission.

g. Paid office salaries of $6,000.

h. Paid dividends of $10,000.

i. Received telephone bill for $400 not due until next month.

j. Sells house and earns a commission of $12,500 but agrees to be paid in 15 days.

Please answer the following questions:

1. What was the total increase in shareholders equity for the period?

2. What was the total net income for the period?