An analysis of the transactions made by S. Moses & Co., a certified public accou

Question

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).)

$

Click here if you would like to Show Work for this question

Explanation / Answer

a) How much did stockholder's equity increase for the month? I really can't make anything of your explanations, you should list the accounts that are affected, but I can show you how to calculate equity. Equity is increased by owner investments (sale of stock) and revenues. Equity is decreased by owner draws (dividends) and expenses. (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).) Revenues - Expenses = Net Income

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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