Using the accounting equation for transaction analysisMissy Crone owns and operates a publ...

Using the accounting equation for transaction analysis

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

During September 2012, the business completed the following transactions:

a. Gave capital to Crone 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 gave capital to owner.

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.

2. Paid advertising, $400.

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

j. Crone withdrew cash 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 1-6.