Question

Alana Palmdale recently opened her own law office, which she operates as a corporation. The name of the new entity is Alana Palmdale, Attorney. Palmdale experienced the following events during the organizing phase of the new business and its first month of operation, March 2016. 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. (Click the icon to view the transactions.) More Info i Requirements Mar 1. Analyze the effects of the preceding events on the accounting equation of Alana Palmdale, Attorney 2. Prepare the following financial statements: a. Income statement. b. Statement of retained earnings c. Balance sheet Print Done 1 Sold personal Investment in Amazon stock, which she had owned for several years, receiving 527,000 cash. 2 Deposited the $27.000 cash from the sale of the Amazon stock in her personal bank account. 3 Deposited $90,000 cash in a new business bank account titled Alana Palmdale, Attomey. The business issued common stock to Palmdale. 5 Pald $550 cash for ink cartridges for the printer 7 Purchased computer for the law office, agreeing to pay the account, $6,800, within three months. 9 Received $3,400 cash from customers for services rendered. 15 Received bill from The Lawyer for magazine subscription, $280. (Use Miscellaneous Expense account.) 23 Finished court hearings on behalf of a client and submitted a bill for legal services, $11,000, on account. 28 Pald bill from The Lawyer. 30 Paid utilities, $820. 31 Received $4,000 cash from clients billed on Mar. 23. 31 Cash dividends of $4,500 were paid to stockholders. er or enter a zero. Print Done

Answer 1

ANSWER:

Answering (2) part first as that forms the basis of the (1) part of the question.

11.00 12.00 1.00 200. the noot ( 21 Income statement - These would be no requisement of preparing the income som statement as the relevant deductions into the same are not present here, Insted only the devenue directly generated le the amount of all,000 (For finished couot hearings) would be taken as the net income for the business. (278) Statement of retained egonings This statement as well is not required here, instead a statement of stock holder's equity would formulate deflecting the final balance of stockholder's equity. which is below : Statement of stockholders equity Particulas Balance at the the beginning (+) Purchases 90,000 it Net Income 11,000 (A) Cash dividends. 4,500. Uosing Balance 96,500 3.00 4.00 as 5.00 Debit 6.00 Coed 0. 7.00

WEDNESDAY WK 18. 120-245 2014 MAY w T т F S 5 2 3 4 5 6 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 31 25 26 27 28 29 APRIL 2014 Balance sheet liabilities Amount 6,800 (2) (c) Assets 9.00 Boount 90,000 Ceditoss 6,800 Stock holded's equity 11,000 96,500 Bank Cash - Cash dividends Debloss 10.00 11.00 103,300 1103,300 12.00

Basis the above explaination, mentioning the first part of the question:

12.00 1.00 2.00 (1) Accounting equation Assets = Ciabilities + Stockholdes's equity The situation here, explains that the accounting equation follows in line with the assets & liabilities secoaded in the Balance sheet Shaved above 3.00 4.00 5.00 MAY 6.00

COmment below for any more clarifications if required.