Question

Your answer is incorrect. Try again. An analysis of the transactions made by Skysong, Inc., 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 – Dividends 1. $16,000 $16,000 2. –2,500 $5,500 $3,000 3. –700 $700 4. 5,700 $3,800 $9,500 Service Revenue 5. –1,300 –1,300 6. –2,000 -$2,000 7. –600 –$600 Rent Expense 8. 350 –350 9. –4,100 –4,100 Salaries/Wages Expense 10. 300 –300 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 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT

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Answer 1

a) Increase in Stockholder's equity = Issue common Stock+Net income-Dividend = 16000+4500-2000 = 18500

b) Net income = 9500-600-4100-300 = 4500