Question

looks like one of the expert answer these wrong!?! can you please help me?!

Nature of Transactions Kristoff Walker operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income. Assets Liabilities + Owner's Equity Cash + Supplies + Land Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned - Expenses Bal. 42,000 5,500 105,000 11,300 141,200 1. +49,100 +49,100 2. -21,000 +21,000 3. -36,500 -36,500 +2,100 +2,100 5. -2,800 -2,800 6. -10,100 -10,100 7. -4,200 -4,200 Bal. 20,700 3,400 126,000 3,300 141,200 -2,800 49,100 -40,700 a. (1) Select the description for transaction 1.

Answer 1

(b) -- What is the amount of the net decrease in cash during the month?

Answer -

Transaction	Explanation	Amount ($)
1.	Given in question	+49100
2.	Given in question	-21000
3.	Given in question	-36500
5.	Given in question	-2800
6.	Given in question	-10100
Total		-21300

Therefore, The Net Decrease in Cash during the month = $21300.

.

(c) -- What is the amount of the net increase in owner's equity during the month?

Answer -

Transaction	Explanation	Amount ($)
1.	Given in question	+49100
3.	Given in question	-36500
5.	Given in question	-2800
7.	Given in question	-4200
Total		+5600

Therefore, The Net Increase in Owner's equity during the month = $5600.

.

(d) -- What is the amount of the net income for the month?

Answer -

Transaction	Explanation	Amount ($)
1.	Given in question	+49100
3.	Given in question	-36500
7.	Given in question	-4200
Total		+8400

Therefore, The Net Income for the month = $8400.

.

(e) -- How much of the net income for the month was retained in the business?

Answer -

Particulars	Explanation	Amount ($)
Net Income for the month	Calculated in Part - (d)	+8400
Transaction No. (5)	Given in question	-2800
Total		+5600

Therefore, The Net Income for the month was retained in the business = $5600.