Question

Question 9 Currir Frank Petronick decided to start an accounting practice after graduation from university. The following is a list of events that occurred concerning Frank's practice during June 2021, the first month of operations 1 After shopping around, Frank found an office to lease and signed a lease agreement. The lease calls for a payment of $1.041 rent per month Borrowed $3.847 from his grandmother so that he could buy some othe furniture for his new office Deposited the $3847 plus $525 of his own cash in a new bank account BMO under the name Petronick Accounting Services Paid the landlord the fest month's rent. 8Purchased furniture for $3.290 on account 11 Moved into the office and obtained the first assignment from a client to prepare year-end financial statements for $1.860. 15 Performed the work on the assignment and sent an invoice to the customer for 51.860. 15 Paid half of the amount of the purchase of furniture 18 Purchased supplies on account for $347. 26 Paid for Internet services. 555 cash > Collected $913 of the Nine 15 billing to the customer 50 Withdrew cash from the business of $143 for personal expenses Prepare a tabular analysis of the effects of the above transactions on the accounting equation of a transaction causes a decrease in Assets, Liabilities or Owner's Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-13 for example. Record entries in the order presented in the problem)

Answer 1

Please find below table useful to compute desired results: -

B Н K R. Accounting Equation Liabilities Owners' Equity Revenue 2 Transactions Assets Rent Expense Internet Expense +Accounts Receivable + Supplies Cash N/A Accounts Payable + Notes Payable + Owners' Equity Owners' Drawings +|Fumiture 4 01-06-2021. 5 04-06-2021. 6 04-06-2021. 3847 3847 525 525 %3D 7 06-06-2021. 8 08-06-2021. 9 11-06-2021. |-1041 |-1041 3290 = 13290 N/A 10 15-06-2021 1860 1860 ==-HS/2 =-HS/2 11 15-06-2021 347 12 18-06-2021. =1347 |-55 913 |-143 -55 13 26-06-2021 %3D |-913 14 28-06-2021. %3D 15 30-06-2021. |-143 |-SUM(P4:P15) |=SUM(L4:L15) |-SUM(R4:R15) |=SUM(B4:B15) =SUM(B16:H16) |=SUM(D4:D15) =SUM(F4:F15) |=SUM(J4:J15) =|=SUM(J16:V16) |=SUM(T4:T15) |=SUM(V4:V15) =SUM(N4:N15) 3SUM(H4:H15) 16 17 18 |=|=SUM(B16:H16)-SUM(J16:L16) Petronick Capital at June 30, 2021 19 LLLLLI

End results would be as follows: -

B D Н к м R т Accounting Equation 2 Transactions Owners' Equity Owners' Drawings + Revenue Assets Liabilities Rent Expense Accounts Receivable + Supplies Accounts Payable +Notes Payable +Owners' Equity Internet Expense Furniture Cash 3 4 01-06-2021. N/A 5 04-06-2021. $3,847 6 04-06-2021. 7 06-06-2021. ($1.041) 8 08-06-2021. 9 11-06-2021. N/A $3,847 $525 $525 (S1,041) $3,290 = $3,290 $1,860 10 15-06-2021. S1,860 11 15-06-2021. (S1,645) ($1,645) $347 12 18-06-2021 $347 %3D 13 26-06-2021 14 28-06-2021. ($55 ($5) $913 (S913) ($143) ($143) ($143) 15 30-06-2021. $525 $1,860 $2,401 $947 $347 $3,290 $1,992 $3,847 (S1,041) 16 $6,985 $6,985 17 18 Petronick Capital at June 30, 2021 $1,146 19