Analyzing transactions and preparing financial statements Helga Ander started a new business and completed these transactions during

Question:

Analyzing transactions and preparing financial statements Helga Ander started a new business and completed these transactions during December.
Dec. 1 Helga Ander transferred $$65,000$ cash from a personal savings account to a checking account in the name of Ander Electric.
2 Rented office space and paid $$1,000$ cash for the December rent.
3 Purchased $$13,000$ of electrical equipment by paying $$4,800$ cash and agreeing to pay the $$8,200$ balance in 30 days.
5 Purchased office supplies by paying $$800$ cash.

6 Completed electrical work and immediately collected $$1,200$ cash for the work.
8 Purchased $$2,530$ of office equipment on credit.

15 Completed electrical work on credit in the amount of $$5,000.$

18 Purchased $$350$ of office supplies on credit.
20 Paid $$2,530$ cash for the office equipment purchased on December 8.
24 Billed a client $$900$ for electrical work completed; the balance is due in 30 days.
28 Received $$5,000$ cash for the work completed on December 15.
29 Paid the assistant’s salary of $$1,400$ cash for this month.
30 Paid $$540$ cash for this month’s utility bill.
31 Ander withdrew $$950$ cash for personal use.
Required

I. Arrange the following asset, liability, and equity titles in a table like Exhibit 2.1: Cash; Accounts Receivable; Office Supplies; Office Equipment; Electrical Equipment; Accounts Payable; H. Ander, Capital; H. Ander, Withdrawals; Revenues; and Expenses.
2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction.
3. Use the increases and decreases in the columns of the table from part 2 to prepare an income statement and a statement of owner’s equity for the month. Also prepare a balance sheet as of the end of the month.

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