An analysis of the transactions made by Cheyenne Corp., a certified public accounting firm, for the month of August is shown below.   Assets = Liabilities + Stockholders’ Equity   Cash + Accounts Receivable + Supplies + Equipment Accounts Payable Common Stock Retained Earnings = + + Revenues – Expenses – Dividend 1. +$14,000 +$14,000 2. –1,000 +$4,500 +$3,500 3. –850 +$850 4. +4,900 +$3,700 +$8,600 Service Revenue 5. –1,200 –1,200 6. –2,500 -$2,500 7. –750   –$750 Rent Expense 8. +500 –500 9. –4,600 –4,600 Salaries/Wages Expense 10.   +700   –700 Utilities Expense (b) Determine how much stockholders’ equity increased for the month. Increase in stockholders' equity $ (c) Compute the amount of net income for the month. Net income $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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An analysis of the transactions made by Cheyenne Corp., a certified public accounting firm, for the month of August is shown below.

 

Assets
=
Liabilities
+
Stockholders’ Equity

 

Cash

+
Accounts
Receivable

+
Supplies

+
Equipment

Accounts
Payable

Common
Stock

Retained Earnings


=
+
+
Revenues

Expenses

Dividend

1.

+$14,000

+$14,000

2.

–1,000

+$4,500

+$3,500

3.

–850

+$850

4.

+4,900

+$3,700

+$8,600

Service Revenue
5.

–1,200

–1,200

6.

–2,500

-$2,500

7.

–750

 

–$750


Rent Expense
8.

+500

–500

9.

–4,600

–4,600


Salaries/Wages Expense
10.

 

+700

 

–700


Utilities Expense

(b) Determine how much stockholders’ equity increased for the month.

Increase in stockholders' equity

$


(c) Compute the amount of net income for the month.

Net income

$

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