An analysis of transactions for Ivanhoe & Co. a certified public accounting firm, for the month of August is shown as follows. The expenses were $600 for rent, $5,600 for salaries and wages, and $600 for utilities. Cash +$14,000 -1,400 -850 Accounts + Receivable + Supplies + Equipment +$4,000 = Accounts Payable +$2,600 Owner's + Capital +$14,000 Owner's Drawings + Revenues

An analysis of transactions for Ivanhoe & Co. a certified public accounting firm, for the month of August is shown as follows. The expenses were $600 for rent, $5,600 for salaries and wages, and $600 for utilities. Cash +$14,000 -1,400 -850 Accounts + Receivable + Supplies + Equipment +$4,000 = Accounts Payable +$2,600 Owner's + Capital +$14,000 Owner's Drawings + Revenues

Name: (c) Compute the amount of net income for the month. Net income $ An a
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Description: (c) Compute the amount of net income for the month. Net income $ An analysis of transactions for Ivanhoe & Co. a certified public accounting firm, for the month of August is shown as follows. The expenses were $600 for rent, $5,600 for salaries and

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

(c) Compute the amount of net income for the month. Net income $ An analysis of transactions for Ivanhoe & Co. a certified public accounting firm, for the month of August is shown as follows. The expenses were $600 for rent, $
5,600 for salaries and wages, and $600 for utilities.

An analysis of transactions for Ivanhoe & Co. a certified public accounting firm, for the month of August is shown as follows. The
expenses were $600 for rent, $5,600 for salaries and wages, and $600 for utilities.
Cash
+$14,000
-1,400
-850
+3.700
-1.200
-2,500
-600
+550
-5,600
Accounts
+ Receivable
+$4,800
-550
Supplies +
+$850
Equipment
+$4,000
=
Accounts
Owner's
Payable + Capital
+$14,000
+$2,600
-1,200
+600
Owner's
Drawings
-$2.500
Revenues
+$8,500

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