Using the accounting equation for transaction analysis [60-75 min]Missy Crone owns and ope...

Using the accounting equation for transaction analysis [60-75 min]

Missy Crone owns and operates a public relations firm called Top 40, Inc. The fol­lowing amounts summarize her business on August 31, 2012:

During September 2012, the business completed the following transactions:

a. Issued common stock and received cash of $10,000.

b. Performed service for a client and received cash of $1,000.

c. Paid off the beginning balance of accounts payable.

d. Purchased supplies from OfficeMax on account, $700.

e. Collected cash from a customer on account, $500.

f. Received cash of $1,900 and issued common stock.

g. Consulted for a new band and billed the client for services rendered, $5,800.

h. Recorded the following business expenses for the month:

1. Paid office rent, $900.

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2. Paid advertising, $400.

i. Returned supplies to OfficeMax for $80 from item d, which was the cost of the supplies.

j. Paid cash dividends of $2,700.

Requirement

1. Analyze the effects of the preceding transactions on the accounting equation of Top 40. Adapt the format to that of Exhibit.

Analysis of Transactions, Smart Touch Learning, Inc.