Arlene Lavoie practiced law with a partnership for 10 years. Recently she opened her own law office, which she operates as a professional corporation. The name of the new entity is Arlene Lavoie, Attorney, RC. Lavoie experienced the following events during the organizing phase of the new business and its first month of operation. 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.

Requirements 

1. Analyze the effects of the preceding events on the accounting equation of the corporation of Arlene Lavoie, Attorney, RC.
2. At May 31, compute the business’s

a. Total assets

b. Total liabilities

c. Total stockholders’ equity

d. Net income or net loss for the month 

3. Evaluate Arlene Lavoie’s first month of operations. Were the results good or bad?

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Sold personal investment in eBay stock, which she had owned for several years, receiving $30,000 cash. Deposited the $30,000 cash from sales of the eBay stock in her personal bank account. May 1 2 3. Received $155,000 cash from former law partners. 5 7 9 23 30 31 Deposited $105,000 cash in a new business bank account titled Arlene Lavoie, Attorney, P.C. The business issued common stock to Lavoie. Paid $600 cash for ink cartirdges for the printer. Purchased computer for the law office, agreeing to pay the account, $9,700, within 3 months. Finished court hearings on behalf of a client and submitted a bill for legal services, $14,500, on account. Paid utilities, $1,100. Paid cash dividends of $8,000.