Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March:

Opened a business bank account with a deposit of $50,000 from personal funds.

Purchased supplies on account, $4,000.

Paid creditors on account, $2,300.

Received cash from fees earned on insurance commissions, $13,800.

Paid rent on office and equipment for the month, $5,000.

Paid automobile expenses for month, $1,150, and miscellaneous expenses, $300.

Paid office salaries, $2,500.

Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300.

Billed insurance companies for fees earned for commissions, $12,500.

Withdrew cash for personal use, $3,900.

Required:

1. Indicate the effect of each transaction and the balances after each transaction. 2. Determine the net income for March.

3. March's transactions increased or decreased Amy Austin's capital to?