Using transactions listed in P2-2 for Restart Technology Services indicate the effects of each transaction on the liquidity metric Cash and profitability metric Net Income – Cash Basis.

Data from P2-2

Aaron Lee established Restart Technology Services on August 1, 20Y4. The effect of each transaction and the balances after each transaction for August are shown below in the integrated financial statement framework.

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Financial Statement Effects BALANCE SHEET Assets Liabilities Stockholders' Equity %3D Retained Notes Payable Common Cash Land %3D Stock Earnings +] a. Issued common stock 50,000 50,000 b. Fees earned 54,000 54,000 Balances 104,000 50,000 54,000 c Rent expense (5,000) (5,000) Balances 99,000 50,000 49,000 d. Issued notes payable 20,000 20,000 119,000 (80,000) 39,000 Balances 20,000 50,000 49,000 e. Purchased land 80,000 Balances 80,000 20,000 50,000 49,000 f. Paid expenses (3,800) (3,800) Balances 35,200 80,000 20,000 50,000 45,200 g. Paid salary expense (9,200) (9,200) Balances 26,000 80,000 20,000 50,000 36,000 h. Paid dividends (6,000) (6,000) Balances, Aug. 31 20,000 80,000 20,000 50,000 30,000 STATEMENT OF CASH FLOWS INCOME STATEMENT a. Financing b. Operating c Operating d. Anancing e. Investing f. Operating $ 50,000 54,000 (5,000) b. Fees earned c. Rent expense f. Auto expense $ 54,000 (5,000) (2,400) 20,000 f. Misc. expense (1,400) (80,000) g. Salary expense (9,200) $ 36,000 (3,800) Net income g. Operating h. Anancing (9,200) (6,000) Increase in cash $ 20,000