Using the accounting equation for transaction analysisMatilda Crone owns and operates a pu...

Using the accounting equation for transaction analysis

Matilda Crone owns and operates a public relations firm called Dance Fever. The following amounts summarize her business on August 31, 2012:

During September 2012, the business completed the following transactions:

a. Gave capital to Crone and received cash of $13,000.

b. Performed service for a client and received cash of $900.

c. Paid off the beginning balance of accounts payable.

d. Purchased supplies from OfficeMax on account, $600.

e. Collected cash from a customer on account, $700.

f. Received cash of $1,600 and gave capital to owner.

g. Consulted for a new band and billed the client for services rendered, $5,500.

h. Recorded the following business expenses for the month:

1. Paid office rent, $1,200.

2. Paid advertising, $600.

i. Returned supplies to OfficeMax for $110 from item d, which was the cost of the supplies.

j. Crone withdrew cash of $2,000.

Requirement

1. Analyze the effects of the preceding transactions on the accounting equation of Dance Fever. Adapt the format to that of Exhibit 1-6.