Neal Hastings established Ember Services, P.C., a professional corporation, on January 1 of the current year. Ember Services offers financial planning advice to its clients. The effect of each transaction on the balance sheet and the balances after each transaction for January are as follows. Each increase or decrease in stockholders’ equity, except transaction (h), affects net income. Assets Liabilities Stockholders’ Equity Accounts Accounts Capital Retained Cash Receivable Supplies Payable Stock Earnings a. 20,000 20,000 b. 900 900 Bal. 20,000 900 900 20,000 c. 775 775 Bal. 19,225 900 125 20,000 d. 11,500 11,500 Bal. 30,725 900 125 20,000 11,500 e. 7,500 7,500 Bal. 23,225 900 125 20,000 4,000 f. 625 625 Bal. 23,225 275 125 20,000 3,375 g. 3,000 3,000 Bal. 23,225 3,000 275 125 20,000 6,375 h. 1,000 1,000 Bal. 22,225 3,000 275 125 20,000 5,375 a. Describe each transaction. b. What is the amount of the net income for January?