Question

An analysis of the transactions made by Sandhill & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $600 for rent, $5,300 for salaries and wages, and $360 for utilities.

Cash

+

Accounts Receivable

+

Supplies

+

Equipment

=

Accounts Payable

+

Owner’s Capital

–

Owner’s Drawings

+

Revenues

–

Expenses

1.

+$14,000

+$14,000

2.

–1,500

+$4,400

+$2,900

3.

–750

+$750

4.

+3,400

+$4,800

+$8,200

5.

–1,500

–1,500

6.

–2,000

–$2,000

7.

–600

–$600

8.

+400

–400

9.

–5,300

–5,300

10.

+360

–360

(b)

Determine how much owner’s equity increased for the month.

Net increase in owner’s equity

:____$

(c)

Compute the amount of net income for the month.

Net income:___$

(Thank you <3)

Answer 1

Solution b) Sandbill & Co Owner's Equity ostatement Beginning Balance $0 Additions! $14000 Net Incomó Crefer (0)] $ 15190 Total Oconer's capital $ 15190 Less:- Dusnoo's Delawings $ 200 $13190 Invested capital $ 1190 Owneis Equity $ 8200 9 Sandila.co Income staternant for menth of August Revenues Legs- supplies Expenses Rent $600 salaries and wages $53.00 Utilities $360 Net Income $750 $ 6960 $1190 Note: If you liked the answer, please give an UpxLooke, " this will be quite encouraging for me, thank you!