Troy Reece established Reece Services, P.C., a professional corporation, in July of the current year. Reece Services offers financial planning advice to its clients. The effect of each transaction on the balance sheet and the balances after each transaction for July are as follows. Each increase or decrease in stockholders€™ equity, except transaction (h), affects net income.

a. Describe each transaction.
b. What is the amount of the net income forJuly?

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Balance Sheet Statement of Cash Flows Assets LiabilitiesStockholders' Equity Income Accounts Payable + Retained Statement + Earnings Capital Cash Recelvable Supplies 50,000 50,000 d. 1,500 1,500 -1,000 500 1,500 50,000 1,500 50,000 -1,000 Ba 49,000 1,500 50,000 35,000 d 35,000 84,000 21,000 63,000 Bal. 1,500 500 50,000 35,000 e. -21,000 e Bal 14,000 -1,100 f 12,900 10,000 g 22,900 -8,000 14,900 1,500 500 50,000 -1,100 Bal 63,000 400 500 50,000 10,000 63,000 -8,000 55,000 Statement of Cash Flows Ba 10,000 400 500 50,000 Ba 10,000 400 500 50,000 Income Statement a. Financing d. Fees eamed e Expenses f Expenses g. Fees earned 35,000 -21,000 -1,100 10,000 22,900 50,000 c Operating 1,000 d. Operating 35,000 e Operating 21,000 h. Financing,000 55,000