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Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $19,200 on
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EVENTS                          ASSETS =                                                LIABILITIES      + STOCK EQUITY
CASH + SUPPLIES = Accounts payable + Unearned Revenue + Retained earnings Revenue - Expenses = Net income CASH FLOWS
1 $ 19,200 + NA = NA + $ 19,200 + NA $ 19,200 - NA = $ 19,200 $ 19,200 OA
2 $ 62,000 + NA = NA + NA + $ 62,000 $ 62,000 - NA = $ 62,000 $ 62,000 OA
3 NA + $ 1,050 = $ 1,050 + NA + NA NA - $ 1,050 = ($ 1,050) ($ 1,050) FA
4 ( $ 945 ) + NA = ( $ 945 ) + NA + NA NA - $ 945 = ( $ 945 ) ( $ 945 ) FA
5 ($5,000) + NA = NA + NA + ($5,000) NA - $5,000 = ($5,000) ($5,000) NC
6 ($19,400) + NA = NA + NA + ($19,400) NA - $ 19,400 = ($19,400) ($19,400) OA
7 NA + ($ 905 ) = NA + NA + ($ 905 ) NA - $ 1,050 = ($ 1,050) ($ 1,050) FA
8 NA + NA = NA + ( $ 17,600) + $ 17,600 $ 17,600 - NA = $ 17,600 $ 17,600 OA
TOTALS $ 55,855 + $ 145 = $ 105 + $ 1,600 + $ 54,295 $ 98,800 - $ 27,445 = $ 71,355 $ 71,355
                 $ 56,000 =                                          $ 56,000
HERE, Transaction 7 = ( $ 1050 -$ 145 ) = $ 905
HERE, Transaction 8 = ( $19200 -$ 19200/12 ) = $ 17,600
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