Exercise 1-46 is the first exercise in a sequence that begins an accounting cycle. The c...

Exercise 1-46 is the first exercise in a sequence that begins an accounting cycle. The cycle is continued in Chapter 2 and completed in Chapter 5.

Sherman Lawn Service began operations and completed the following transactions during August:

Requirement

1. Analyze the effects of Sherman Lawn, Service transactions on the accounting equation. Use the format of Exhibit 1-8, and include these headings: Cash, Accounts receivable, Lawn supplies, Equipment, Accounts payable, and Hannah Sherman, Capital.

In Chapter 2, we will account for these same transactions a different way—as the accounting is actually performed in practice.