Problem 1-47 is the first problem in a sequence that begins an accounting cycle. The cyc...

Problem 1-47 is the first problem in a sequence that begins an accounting cycle. The cycle is continued in Chapter 2 and completed in Chapter 5.

Haupt Consulting began operations and completed the following transactions during the first half of December:

Requirements

1. Analyze the effects of Haupt Consulting’s transactions on the accounting equation. Use the format of Exhibit 1-8, and include these headings: Cash, Accounts receivable, Supplies, Equipment, Furniture, Accounts payable, and Carl Haupt, Capital.

2. Prepare the income statement of Haupt Consulting for the month ended December 31, 2010.

3. Prepare the statement of owner’s equity for the mouth ended December 31, 2010.

4. Prepare the balance sheet at December 31, 2010.

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