Question

P1-45A (similar to) Question Help Alan Shriver recently opened his own accounting firm on April 1, which he operates as a corporation. The name of the new entity is Alan Shriver, CPA. Shriver experienced the following events during the organizing phase of the new business and its first month of operations in 2018: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Analyze the effects of the events on the accounting equation of Alan Shriver, CPA Analyze the events chronologically, one transaction at a time, beginning with the transaction on the 5th. For each transaction that follows the transaction on the 5th, calculate the balance in each account after analyzing its effect on the accounting equation. After calculating the ending balance of each account on the 30th, calculate total assets and total liabilities and equity (Complete only the necessary answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; A/R = Accounts Receivable; Com. = Common; Contr. = Contributed; Div. = Dividends; Exp. = Expense; Furn. = Furniture, Liab = Liabilities, Rev. = Revenue; Sup. = Supplies; Util. = Utilities.) ASSETS = LIAB. EQUITY Cash + A/R + Furn. = A/P Contr. Cap. + + Com. Stock + C D + Office Sup + C Div. Retained Earnings + Service - Rent Rev. Exp. + C D - Util. Exp. C 4/5 + C +C = C Enter any number in the edit fields and then click Check Answer.

Answer 1

1) Accounting Equation analysis:
Date	Assets				=	Liabilities +	Equity
	Cash +	AR +	Off. Sup +	Furni. +	=	AP	CS +	RE
					=			Ser Rev. -	Rent exp. -	Utili exp.	Dividend paid
5-Apr	76000				=		76000
6-Apr	-500		500		=
7-Apr				9900	=	9900
10-Apr	3100				=			3100
11-Apr	-250				=					-250
12-Apr		13000			=			13000
18-Apr	-1400				=				-1400
25-Apr	13000	-13000			=
27-Apr	-9900				=	-9900
30-Apr	-2000				=						-2000
Balance	78050	0	500	9900	=	0	76000	16100	-1400	-250	-2000
Sub-Total					=	0	76000	12450
G. Total				88450	=	88450
2) (a) Income Statement:
	Amount $
Service Revenue	16100
Less:Expenses:
Rent	1400
Utilities	250
Total exp.	1650
Net Income	14450
(b) Statement of Retained Earnings:
	Amount $
Net income	14450
Less:Dividend paid	2000
Closing Balance	12450
c) Balance Sheet:
Assets:	Amount $
Cash	78050
Office supplies	500
current assets	78550
Furniture	9900
Total Assets	88450
Liabilities & Equity:	Amount $
AP	0
Equity:
Common Stock	76000
Retained Earnings	12450
Total Liabilities & Equity	88450