Assets = Liabilities + Stockholders’ Equity Cash + Accounts Receivable + Supplies + Equipment Accounts Payable Common Stock Retained Earnings = + + Revenues - Expenses - Dividends 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 $ Enter the increase in stockholders' equity in dollars (c) Compute the amount of net income for the month. Net income $ Enter the net income in dollars
Assets = Liabilities + Stockholders’ Equity Cash + Accounts Receivable + Supplies + Equipment Accounts Payable Common Stock Retained Earnings = + + Revenues - Expenses - Dividends 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 $ Enter the increase in stockholders' equity in dollars (c) Compute the amount of net income for the month. Net income $ Enter the net income in dollars
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| Assets | = | Liabilities | + | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Cash |
+ |
Accounts
Receivable |
+ |
Supplies
|
+ |
Equipment
|
Accounts
Payable |
Common
Stock |
|||||||||||
| = | + | + |
Revenues
|
- |
Expenses
|
- |
Dividends
|
||||||||||||
| 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 | $ Enter the increase in stockholders' equity in dollars |
(c) Compute the amount of net income for the month.
| Net income | $ Enter the net income in dollars |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education