Applying the entity concept, using the accounting equation for transaction analysis, prepa...

Applying the entity concept, using the accounting equation for transaction analysis, preparing financial statements, and evaluating business performance

Aimee Griffin practiced law with a partnership for 10 years. Recently she opened her own law office, which she operates as a proprietorship. The name of the new entity is Aimee Griffin, Attorney. Griffin experienced the following events during the organizing phase of the new business and its first month of operation. 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.

Requirements

1. Analyze the effects of the preceding events on the accounting equation of the propriertorship of Aimee Griffin, Attorney. Use a format similar to Exhibit 1-6.

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2. At December 31, compute the business’s

a. total assets.

b. total liabilities.

c. total owner’s equity.

d. net income or net loss for the month.

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3. Evaluate Aimee Griffin, Attorney’s first month of operations. Were the results good or bad?