Obj. Fees
Dividends + Earned - Expenses
EX 1-13 Nature of transactions
Teri West operates her own catering service. Summary financial data for July are presented in
tion on the equation. Each increase and decrease in stockholders' equity, except transaction
equation form as follows. Each line designated by a number indicates the effect of a transac-
(5), affects net income.
Assets
Liabilities +
Stockholders' Equity
Accounts
Cash + Supplies + Land
Common Retained
Payable + Stock Earnings
Bal. 40,000
3,000 82,000 7,500 50,000
67,500
1. +71,800
2. -15,000
+15,000
-47,500
3. -47,500
4.
+1,100
+1,100
5. -5,000
-5,000
6. -4,000
-4,000
-1,500
7.
-1,500
Bal. 40,300 2,600 97,000
71,800 -49,000
4,600 50,000 67,500 -5,000
+71,800