Question

A tabular analysis of the transactions made during September 2022 by Huskies Together Company during its first month of operations is shown as follows. Each increase and decrease in stockholders’ equity is explained.

Show all your work for partial credits in your uploaded file.

Part I: Describe each transaction.

Part II: Determine how much stockholders’ equity changed for the month.

         Part III: Compute the net income for the month.

Assets =

Liabilities

+

Stockholders’ Equity

Cash

+

Accounts Receivable

+

Supplies

+

Equipment

=

Accounts Payable

+

Common Stock

+

Retained Earnings

Revenues

–

Expenses

–

Dividend

1.

$30,000

$30,000

2.

–2,000

6,000

4,000

3.

–600

600

4.

–2,500

–2,500

5.

4,100

5,400

9,500

Service Revenue.

6.

-700

-700

Rent Expense

7.

–2,600

–2,600

8.

–3,000

–3,000

Salary Expense

9.

250

–250

10.

400

–400

Answer 1

Part 1 1 2 Nm 4 5 6 Issued Common stock for cash $30,000 Purchase of Equipment $6,000 cash paid $2,000 and balance on account $4,000 Purchase of Supplies for cash $600 Accounts payable of Transaction 2 paid in cash $2,500 Service revenue for the service rendered, Cash $4,100, on account $5,400 Paid rent expenses in cash $700 Cash dividend paid $2,600 Salary expense paid in cash $3,000 Expenses incurred on account $250 Cash collected from customers $400 7 8 9 10 Part II Stockholders' equity increased by $32,950 for the month Common stock issued Net profit $30,000 $5,550 $35,550 $2,600 $32,950 Less: Dividend paid Closing balance Part 11 Net Income for the month $5,550 $9,500 Service revenue Less: expenses Rent expense Salary expense Other expense Total expenses Net Income $700 $3,000 $250 $3,950 $5,550