Question

Ally Pivone recently opened her own law office on March 1, which she operates as a sole proprietorship. The name of the new entity is Ally Pivone​, Attorney. Pivone experienced the following events during the organizing phase of the new business 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.

Mar. 1 Sold personal investment in Amazon.com stock, which she had owned for several years, receiving $31,000 cash. 2 Deposited the $31,000 cash from the sale of the Amazon.com stock in her personal bank account. 3 Deposited $60,000 cash in a new business bank account titled Ally Pivone, Attorney. The business gave capital to Pivone 5 Paid $350 cash for ink cartridges for the printer 7 Purchased computer for the law office, agreeing to pay the account, $9.200, within three months 9 Received $2,900 cash from customers for services rendered. 15 Received bill from The Lawyer for magazine subscription, $390. (Use Miscellaneous Expense account.) 23 Finished court hearings on behalf of a client and submitted a bill for legal services, $9,000, on account. 28 Paid bill from The Lawyer 30 Paid utilities, $800 31 Received $2,300 cash from clients billed on March 23 31 Pivone withdrew cash of $4,000 Requirements 1 1. Analyze the effects of the preceding events on the accounting equation of Ally Pivone, Attorney. 2. Prepare the following financial statements a. Income statement. b. Statement of owner's equity. c. Balance sheet. d. Statement of cash flows. Print Done Requirement 2. Propare the finandal statomenta Income statement. (Hab0isnot used in the table laanthe box empty, dont soiect 교 labd orart razaro.) Raviow the anding balances of the account from Risquinement 1 Not lncom b. Statement of owne's quity. Entor any incoases in capital prior to the subtotal and any clecnaato capital baolow the subtotal(Entior a O for any zro balancos) Raviow the anding balances of the account from Risquinement 1 Pivona Capital, March 1, 2018 Plvona Capital, March 31, 2018

Answer 1

Liabilities Assets Cash A/R Office Comp. Capital WithdrawlsService Rev.Utilities Misc. Ex Expense 0 0 0 0 0 2 0 0 0 9200 0 2 9200 0

6700 52 Balance 63660 350 9200 9200 60000 11900 800 390 53 31-Mar 4000 54 Balance 59660 6700 + 350 + 9200 9200 4000 11900 390 56