(L. OBJ. 6, 7, 8, 9, 10) Applying the entity concept, using the accounting equation for...

(L. OBJ. 6, 7, 8, 9, 10) Applying the entity concept, using the accounting equation for transaction analysis, preparing financial statements, and evaluating business performance [20—30 min]

Robert Ryan practiced accounting with a partnership for five years. Recently he opened his own accounting firm, which he operates as a proprietorship. The name of the new entity is Robert Ryan, CPA. Ryan experienced the following events during the organizing phase of the new business and its first month of operations. Some of the events were personal and did not affect the business.

Requirements

1. Analyze the effects of the events on the accounting equation of the corporation of Robert Ryan, CPA. Use a format similar to Exhibit 1-8.

2. As of February 28, compute:

a. Total assets

b. Total liabilities

c. Total owner’s equity

d. Net income or net loss for February