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Nature of Transactions Teri West operates his own catering service. Summary financial data for July are presented 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 Cash + Supplies + Land = Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned Fees Earned - Expenses Bal. 34,400 4,500 86,000 9,300 115,600 +40,200 +40,200 1. 2. -17,200 +17,200 3. -29,900 -29,900 4. +1,700 +1,700 5. -2,300 -2,300 6. -8,300 -8,300 7 -3,400 -3,400 Bal. 16,900 2,800 103,200 2,700 115,600 -2,300 40,200 -33,300 a. (1) Select the description for transaction 1. Provided catering services for cash. a. (2) Select the description for transaction 2. Purchase of land for cash. a. (3) Select the description for transaction 3. Payment of cash for expenses. a. (4) Select the description for transaction 4. a. (3) Select the description for transaction 3. Payment of cash for expenses. a. (4) Select the description for transaction 4. Purchase of supplies on account. a. (5) Select the description for transaction 5. Withdrawal of cash by owner. a. (6) Select the description for transaction 6. Payment of cash to creditors. a. (7) Select the description for transaction 7 Recognition of cost of supplies used. b. What is the amount of the net decrease 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

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