Tanya Maguire established Five Star Services, P.C., a professional corporation, on March 1 of the current year. Five Star Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for March are as follows. Each increase or decrease in owners’ equity, except transaction (h), affects net income.

a. Describe each transaction.

b. What is the amount of the net income for March?

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Assets = Liabilities + Accounts Accounts Cash +Receivable + Supplies ===== Owners' Equity Payable + Stock + Earnings Capital Retained a. +18,000 +18,000 b. +1,725 +1,725 Bal. C. - 18,000 1,225 Bal. 16,775 1,725 1,725 18,000 -1,225 1,725 500 18,000 d. + 7,750 +7,750 Bal. 24,525 1,725 500 18,000 7,750 e. Bal. - - 6,000 -6,000 18,525 1,725 500 18,000 1,750 f. -1,150 -1,150 Bal. 18,525 575 500 18,000 600 g. +4,350 +4,350 Bal. 18,525 4,350 575 500 18,000 4,950 h. - 3,000 -3,000 Bal. 15,525 4,350 575 500 18,000 1,950