Carol Thompson practiced law with a large firm, a partnership, for 10 years after grad-uating from law school. Recently she resigned her position to open her own law office, which sheoperates as a professional corporation. The name of the new entity is Carol Thompson, Attorneyand Counselor, Professional Corporation (P.C.). Thompson experienced the following events during the organizing phase of her new business and its first month of operations. Some of the eventswere personal and did not affect the law practice. Others were business transactions and should beaccounted for by the business.July 1 Thompson sold 1,000 shares of Eastman Kodak stock, which she had owned for severalyears, receiving \(\$ 88,000\) cash from her stockbroker.2 Thompson deposited in her personal bank account the \(\$ 88,000\) cash from sale of theEastman Kodak stock.3 Thompson received \(\$ 150,000\) cash from her former partners in the law firm from whichshe resigned.5 Thompson deposited \(\$ 140,000\) cash in a new business bank account entitled CarolThompson, Attorney and Counselor, P.C. The business issued common stock toThompson.6 A representative of a large company telephoned Thompson and told her of the compa-ny's intention to transfer its legal business to the new entity of Carol Thompson, Attor-ney and Counselor, P.C.7 Thompson paid \(\$ 550\) cash for letterhead stationery for her new law office.9 Thompson purchased office furniture for the law office, agreeing to pay the accountpayable, \(\$ 9,500\), within three months.23 Thompson finished court hearings on behalf of a client and submitted her bill for legalservices, \(\$ 3,000\). She expected to collect from this client within one month.30 Thompson paid office rent, \(\$ 1,900\).31 The business declared and paid a cash dividend of \(\$ 500\).Required1. Classify each of the preceding events as one of the following:a. A business transaction to be accounted for by the business of Carol Thompson, Attorneyand Counselor, P.C.b. A business-related event but not a transaction to be accounted for by the business of CarolThompson, Attorney and Counselor, P.C.c. A personal transaction not to be accounted for by the business of Carol Thompson, Attor-ney and Counselor, P.C.

2. Analyze the effects of the above events on the accounting equation of the business of CarolThompson, Attorney and Counselor, P.C. Use a format similar to Exhibit 1-6.