The analysis of Sullivan HVAC, Inc.€™s first seven transactions follows. The business only sold stock once and paid no dividends.

1. Label each of the transactions in the preceding analysis with the corresponding letter of the description that best fits it:
a. Earned revenue for services provided, but customer will pay later.
b. Customers paid cash for services completed earlier in the month.
c. Received cash for revenue earned by providing services.
d. Paid cash for expenses incurred to operate the business.
e. Paid cash to purchase equipment.
f. Sold stock to start the business.
g. Purchased equipment with a bank loan.
2. If these transactions fully describe the operations of Sullivan HVAC, Inc., during the month, what was the amount of its net income or netloss?

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LiabilitiesStockholders' Equity Assets Accounts Notes Common Retained Cash Receivable Equipment Payable Payable Stock + Earnings Accounts 1. $50,000 2. 2,500 3. 4. 5. 1,400 6. 1,800 7. 500 500 +$50,000 +2,500 +20,000 + $20,000 +800 - 1,400 +1,800 +$800