A tabular analysis of the transactions made during August 2014 by Baxter Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. 
Instructions
(a) Determine how much stockholders' equity increased for the month.
(b) Compute the net income for the month.
Definitions:
Desert Crusts
Biological crusts formed by a community of microorganisms, including cyanobacteria, algae, and fungi, which stabilize desert soils and prevent erosion.
Nitrogen Fixation
Incorporation of nitrogen gas into ammonia.
Western Coast
The land along the western edge of a continent, facing the ocean or sea.
Chaparrals
A biome characterized by dense, spiny shrubs and a Mediterranean climate, with hot, dry summers and cool, wet winters, found in regions like California.
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