Teri West operates his own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by effect of a transaction on the equation. Each increase and decreasm in Provided catering services for cash. a. (2) Select the desciption for transaction 2:1: Purchase of land for cash. a. (3) Select the description for transaction 3 . Pavment of cish for expenses. * 4 a. (4) Seiect the description for transaction 4. Purchase of supplies on accounti a. (5) Select the description for transaction 5. Withdrawal of cash by owner. a. (6) Select the descrigtion for transactan 6 . a. (7) Select the description for vanaction 7. Becognition of cost of supplies used \&. b. What is the amount of the net decrease in cast duting the month? c. What is the amount of the net increase in owners equty during the month? 1x a. What is the armsunt of the net income for the momth? e. How much of the nat income for the month was retained in the businese? b. What is the amount of the net decrease in cash during the month? c. What is the amount of the net increase in owner's equity during the month? x d. What is the amount of the net incame for the menth? e. How much of the netfincome for the month was retained in the businens? Fenchsie: Y Check My Work a. Review Transactions A through H summarized in Exhibit 5 in the text. Recall that the offect of overy transaction must modify the acocunting equation, yet causer it to terma overaili. b. What is the diflerence in the beginning amount of cash and the ending amount of cash? c. The expanded accounting equaton adds revenue to and subtracts expenses and withdrawals from the capital accourt: d. Nes income is the excess of revenues over expenses. e. Remember that the cwner removing funds for personal use reduces the owner's equity. Teri West operates his own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by effect of a transaction on the equation. Each increase and decreasm in Provided catering services for cash. a. (2) Select the desciption for transaction 2:1: Purchase of land for cash. a. (3) Select the description for transaction 3 . Pavment of cish for expenses. * 4 a. (4) Seiect the description for transaction 4. Purchase of supplies on accounti a. (5) Select the description for transaction 5. Withdrawal of cash by owner. a. (6) Select the descrigtion for transactan 6 . a. (7) Select the description for vanaction 7. Becognition of cost of supplies used \&. b. What is the amount of the net decrease in cast duting the month? c. What is the amount of the net increase in owners equty during the month? 1x a. What is the armsunt of the net income for the momth? e. How much of the nat income for the month was retained in the businese? b. What is the amount of the net decrease in cash during the month? c. What is the amount of the net increase in owner's equity during the month? x d. What is the amount of the net incame for the menth? e. How much of the netfincome for the month was retained in the businens? Fenchsie: Y Check My Work a. Review Transactions A through H summarized in Exhibit 5 in the text. Recall that the offect of overy transaction must modify the acocunting equation, yet causer it to terma overaili. b. What is the diflerence in the beginning amount of cash and the ending amount of cash? c. The expanded accounting equaton adds revenue to and subtracts expenses and withdrawals from the capital accourt: d. Nes income is the excess of revenues over expenses. e. Remember that the cwner removing funds for personal use reduces the owner's equity
