alyze transactions and pute net income 4) n analysis of the transactions made by

Question

alyze transactions and pute net income 4) n analysis of the transactions made by Arthur Cooper & Co., a certified public irm, for the month of August is shown below. The expenses were $650 for rent, 1-8 A $4,800 for salaries and wages, and $400 for utilities. Accounts Accounts Owner's Owner's Expenses Cash + Receivable + Surlies + Equipment . Payable+ Capital -Drawings + kevenues +$15,000 -2,000 -750 +$15,000 +$5,000+$3,000 +4,600+$3,900 +$8,500 -1,500 -2,000 -650 1,500 -$2,000 -$650 +450450 -4,800 -400 -4,800 +400 Instructions (a)Describe each transaction that occurred for the month. (b) Determine how much owner's equity increased for the month. (c) Compute the amount of net income for the month.

Explanation / Answer

b) Owner's equity increased by :

Contrbution during the month = 15000

add: net income = 2650

less: Drawing = 2000

= $15650

c) Net income calculation :

Total revenue = 8500   

less:Total expenses = 5850

   net income =2650

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.