Learning Objectives 4, 5 2c.
Total Assets $110,480
P1-46A Using the accounting equation for transaction analysis and preparing financial statements
Angela Peters recently opened her own law office, which she operates as a sole proprietorship. The name of the new entity is Angela Peters, Attorney. Peters experienced the following events during the organizing phase of the new business and its first month of operation, March 2014. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business,
1 Sold personal investment in eBay stock, which she had owned for several years, receiving $31,000 cash.
2 Deposited the $31,000 cash from the sale of the eBay stock in her personal bank account.
3 Deposited $89,000 cash in a new business bank account titled Angela Peters, Attorney. The business gave capital to Peters.
5 Paid $400 cash for ink cartridges for the printer,
7 Purchased computer for the law office, agreeing to pay the account, $9,300, within three months.
9 Received $2,000 cash from customers for services rendered.
15 Received bill from The Lawyer for magazine subscription, $120.
23 Finished court hearings on behalf of a client and submitted a bill for legal services, $13,500, on account.
28 Paid bill from The Lawyer.
30 Paid utilities, $1,200
31 Received $3,000 cash from clients billed on Mar 23.
31 Peters withdrew cash of $2,000.