Question

Angela Pivone recnly opened her ow law ofice o Marc 1, whih she operats as a soe propietrship. The name of te new etty is Angela Pivon, Atmey. Pivone experienced the followng events drig the organizng phase o the new busness and its first month of operation, March 2018. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business O (Click the icon to view the transactions.) nta Read the Requirement 1. Analyze the effects of the preceding events on the accounting equation of Angela Pvone, Atorney Analyze the events chronologically, one transaction at a time, beginning with the transaction on the tst For each transaction that follows the transaction on the 2nd, calculate the balance in each account after analyzing its efect on the accounting equation. Ater calculating the ending balance of each account on the 31st, calculate total assets and total labiltes and equity (Complete only the necessary anower boves for your transaction lines. [Do not enter any zeros for your transaction lines fa transaction is personal and does not affect the business, leave the transaction ine blank. Carry down al balances to the "Bal" ine, including zero balance accounts, entering a "0 tor any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used AP Accounts Payable, AR Accounts Receivable, Cap Pivone, Capitat, Comp Computer, Exp Expense, Liab Liabities Misc Miscellaneous, Rev Revenue, Sup Supplies. Ut - Utes, Wiha Pvone, Wthdrawas) ASSETS LIAB. EQUITY Cash • Ofice Comp Withdr Service Cap. UN -Msc Sup. Rev. Exp. Exp 32 Bal 33 Bal 35 Ba 37

Answer 1

Please find below table useful to compute desired results: -

м B G. Н K Liabilities = A/P 1 Date Assets Equity + Service Rev. T-|Uti. Exp. +Office Sup. + Cap. Withdr. Misc. + JA/R no transaction in business books of accounts no transaction in business books of accounts +Comp. Cash 2 з 1 Mar. 4 2 Mar 5 3 Mar 6 5 Mar. -400 7 7 Mar. 8 9 Mar. 1800 9 15 Mar 10 23 Mar. 11 28 Mar. -390 12 30 Mar. |-920 13 31 Mar. 2900 14 31 Mar. -6000 15 Balance -SUM(B3:B14) 80000 80000 400 6800 6800 1800 390 |-390 11000 11000 -390 -920 |-2900 -6000 |=SUM(J3:J14) |= |=SUM(J15:T15) =SUM(D3:D14) =SUM(F3:F14) |-SUM(H3:H14) |=SUM(L3:L14) =SUM(N3:N14) |=SUM(P3:P14) |=SUM(T3:T14) =SUM(R3:R14) |=SUM(B15:H15) 16 17 Balance Sheet Income statement: Statement of owner's Equity =L3 18 Opening Balance Add: - 19 Service Revenue 20 Less: - 21 Utilities 22 Misc. Expenses =P15 Liabilities: Accounts Payable =J15 |=J25 =SUM(P20:P21) =R15 |=T15 |=SUM(D19:D22) Investment =L15 |=D23 Common Stock Total Net Income Less: - withdrawl 23 Net Income =N15 Assets: 24 Closing Balance |=SUM(J19:J24) Cash =B15 =D15 |=F15 |=H15 =SUM(P25:P28) 25 Accounts Receivable Office supplies Computer Total 26 27 28 29

End results would be as follows: -

D Н K Date Assets Liabilities Equity Uti. Exp. Misc. Office Sup. A/R Cash Comp. A/P Cap. Withdr. Service Rev. 2 1 Mar. 2 Mar. no transaction in business books of accounts 3 no transaction in business books of accounts 4 3 Mar. 80,000 80,000 6 5 Mar. 7 Mar. 9 Mar. (400) 400 6,800 6,800 1,800 1,800 (390) 390 15 Mar. 11,000 10 23 Mar 11,000 (390) 28 Mar. (390) (920) 2,900 11 (920) 30 Mar. 12 (2,900) 31 Mar. 13 14 31 Mar. (6,000) (6,000) (6,000) (920) (390) 92,290 15 Balance 76,990 8,100 400 6,800 6,800 80,000 12,800 92,290 16 17 Statement of owner's Equity Income statement: Balance Sheet 18 Liabilities: 19 Service Revenue 12,800 Opening Balance 20 Less: - Accounts Payable 6,800 Add: - (920) (390) 21 Utilities 80,000 Investment Common Stock 85,490 22 Misc. Expenses Net Income 11,490 Total 92,290 23 Net Income 11,490 Less: - (6,000) 85,490 withdrawl Assets: 24 Closing Balance Cash 76,990 25 Accounts Receivable 8,100 26 Office supplies 400 27 Computer 6,800 28 Total 92,290 29