Carol Olds, CPA, began a public accounting practice and during a short period completed these transactions:

a. Sold for \(\$ 43,750\) a personal investment in General Motors stock and deposited \(\$ 40,000\) of the proceeds in a bank account opened in the name of the practice.

b. Purchased for \(\$ 100,000\) a small building to be used as an office. She paid \(\$ 35,000\) in cash and signed a note payable promising to pay the balance over a period of years.

c. Took office equipment from home for use in the practice. The equipment had a \(\$ 500\) fair value.

d. Purchased office supplies for cash, \(\$ 350\).

e. Purchased office equipment on credit, \(\$ 6,000\).

f. Completed accounting work for a client and immediately collected \(\$ 530\) for the work done.

g. Paid a local newspaper \(\$ 160\) for a notice of the opening of the practice.

h. Completed \(\$ 900\) of accounting work for a client on credit.

i. Made a \(\$ 600\) installment payment on the equipment purchased in transaction (e).

\(j\). The client of transaction ( \(h\) ) paid \(\$ 600\) of the amount he owed.

k. Paid the office secretary's wages, \(\$ 550\).

l. Carol Olds withdrew \(\$ 300\) from the bank account of the practice to pay personal living expenses.

\section*{Required}
1. Arrange the following asset, liability, and owner's equity titles in an equation like Illustration 1-8: Cash; Accounts Receivable; Office Supplies; Office Equipment; Building; Accounts Payable; Notes Payable; and Carol Olds, Capital. Leave space for an Explanation column to the right of Carol Olds, Capital.
2. Show by additions and subtractions the effects of each transaction on the elements of the equation. Show new totals after each addition or subtraction. Next to each change in Carol Olds, Capital, state whether the change was caused by an investment, a revenue, an expense, or a withdrawal.