Question

i only need help with e

ow w Teri West operates her own catering service. Summary financial data for July are pre- sented 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 Accounts Teri West, Teri West, Fees Cash + Supplies + Land Payable + Capital Drawing + Earned - Expenses Bal. 40,000 3,000 82,000 7,500 117,500 1. +71,800 +71,800 2. -15,000 +15,000 3. -47,500 -47,500 4. +1,100 +1,100 5. -5,000 -5,000 6. 4,000 -4,000 7. -1,500 -1,500 Bal. 40,300 2,600 97,000 4,600 117,500 -5,000 71,800 -49,000 Describe each transaction. b. What is the amount of the net increase in cash during the month? c. What is the amount of the net increase in owner's equity during the month? d. What is the amount of the net income for the month? e. How much of the net income for the month was retained in the business?

Answer 1

e
Fees earned	71800
Less: Expenses	-49000
Net income	22800
Less: Teri West, Drawing	-5000
Net income retained in the business	17800