Analyzing transactions and preparing financial statementsDraper Consulting began operation...

Analyzing transactions and preparing financial statements

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

Requirements

1. Analyze the effects of Draper Consulting’s transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash; Accounts receivable; Supplies; Equipment; Furniture; Accounts payable; and Draper, capital.

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2. Prepare the income statement of Draper Consulting for the month ended December 31, 2012.

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3. Prepare the statement of owner’s equity for the month ended December 31, 2012.

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4. Prepare the balance sheet at December 31, 2012.