At the end of March 2014, total owner's equity for Beaulieu Group Company was $8,050. During April, the following transactions occurred:

1. Provided services to a client and received $1,785 cash.

2. Paid $965 for April's rent.

3. Purchased $480 of supplies on account.

4. Provided services to a client and billed the client $2,160.

5. Collected $1,000 from the client billed in transaction 4.

6. Received $5,000 cash from the bank and signed a one-year, 5% note payable.

7. Used the cash received in transaction 6 to purchase equipment.

8. Received $800 cash from a client for services to be provided in May.

9. Paid $850 cash for radio advertising that will be aired in May.

10. Paid for the supplies purchased on account in transaction 3.

11. Shehla Beaulieu, the owner, withdrew $1,565 cash for personal use.

Instructions

(a) Journalize the transactions.

(b) For each transaction, identify if it increased, decreased, or had no effect on owner's equity and explain why.

(c) Calculate total owner's equity as at April 30.