An analysis of the transactions made by Peat Deloitte & Co., a certifi ed public
accounting fi rm, for the month of August is shown below. The expenses were $560 for rent, $4,800 for
salaries and wages, and $400 for utilities.
Accounts Accounts Owners Owners
Cash + Receivable + Supplies + Equipment = Payable + Capital Drawings + Revenues Expenses
1. +$15,000 +$15,000
2. 2,000 +$5,000 +$3,000
3. 750 +$750
4. +4,000 +$4,500 +$8,500
5. 1,500 1,500
6. 2,000 $2,000
7. 560 $560
8. +450 450
9. 4,800 4,800
10. +400 400
Instructions
a. Describe each transaction that occurred for the month.
b. Determine how much owners equity increased for the month.
c. Compute the amount of net income for the month.