An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholder’s equity is explained.
Cash + Accounts
Receivable + Supplies + Office
Equipment = Accounts
Payable + Stockholder’s Equity
1. +$15,000 +$15,000 Investment
2. -2,000 +$5,000 +$3,000
3. -750 +$750
4. +4,600 +$3,700 +8,300 Service Revenue
5. -1,500 -1,500
6. -2,000 -2,000 Dividends
7. -650 -650 Rent Expense
8. +450 -450
9. -4,900 -4,900 Salaries Expense
10. +500 -500 Utilities Expense
Instructions
(a) How much did stockholder’s equity increase for the month?
$
(b) Compute the amount of net income for the month. (If a net loss, record amount using either a negative sign preceding the number eg -45 or parentheses eg (45).)
$
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