Solution-Compute the amount of net income for the month

Compute the amount of net income for the month

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Reference no: EM131786151

Question - An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholder's equity is explained.

	Cash	+ Accounts Receivable	+ Supplies	+ Office Equipment	= Accounts Payable	+ Stockholder's Equity
1.	+$15,000					+$15,000 Investment
2.	-2,000			+$5,000	+$3,000
3.	-750		+$750
4.	+4,600	+$3,700				+8,300 Service Revenue
5.	-1,500				-1,500
6.	-2,000					-2,000 Dividends
7.	-650					-650 Rent Expense
8.	+450	-450
9.	-4,900					-4,900 Salaries Expense
10.					+500	-500 Expense

Instructions -

(a) How much did stockholder's equity increase for the month?

(b) Compute the amount of net income for the month.

Reference no: EM131786151

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Compute the amount of net income for the month

Reference no: EM131786151

Reference no: EM131786151

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