Lisa Owen operates and is the major stockholder of an interior design studio calledOwen Interiors, Inc. The following amounts summarize the financial position of the business onAugust 31, 19X2:

During September 19X2 the following events occurred:a. Owen inherited \(\$ 20,000\) and deposited the cash in the business bank account. The business is-sued common stock to Owen.b. Performed services for a client and received cash of \(\$ 700\).c. Paid off the beginning balance of accounts payable.d. Purchased supplies on account, \(\$ 1,000\).e. Collected cash from a customer on account, \(\$ 1,000\).f. Received cash of \(\$ 1,000\) and issued common stock to Owen.g. Consulted on the interior design of a major office building and billed the client for servicesrendered, \(\$ 2,400\).h. Recorded the following business expenses for the month:(1) Paid office rent- \(\$ 900\).(2) Paid advertising- \(\$ 100\).i. Sold supplies to another business for \(\$ 150\) cash, which was the cost of the supplies.j. Declared and paid a cash dividend of \(\$ 1,800\).Required1. Analyze the effects of the above transactions on the accounting equation of Owen Interiors,Inc. Adapt the format of Exhibit 1-6.2. Prepare the income statement of Owen Interiors, Inc., for the month ended September 30,19X2. List expenses in decreasing order by amount.3. Prepare the entity's statement of retained earnings for the month ended September 30, 19X2.4. Prepare the balance sheet of Owen Interiors, Inc., at September 30, 19X2.5. What did you learn from working this problem?6. How will what you learned help you manage a business?

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Assets Accounts = Liabilities +Stockholders' Equity Accounts Common Retained Cash Receivable +Supplies + Land = Payable + Bal. 1,250 12,000 1,500 8,000 Stock + Earnings 4,000 2,750