Grand Appraisal Service provides commercial and industrial appraisals and feasibility studies. On January 1, the assets and liabilities of the business were the following: Cash, \(\$ 11,700\); Accounts Receivable, \(\$ 15,800\); Accounts Payable, \(\$ 600\); and Notes Payable, \(\$ 3,500\). Common Stock had a balance of \(\$ 18,400\). Assume that Retained Earnings as of January 1 were \(\$ 5,000\). The following transactions occurred during the month of January:

1 Paid rent for January, \(\$ 950\).

2 Received \(\$ 8,800\) payment on customers' accounts.

3 Paid \(\$ 750\) on accounts payable.

4 Received \(\$ 2,500\) for services performed for cash customers.

5 Borrowed \(\$ 5,000\) from a bank and signed a note payable for that amount.

6 Billed the city \(\$ 6,200\) for a feasibility study performed; billed various other credit customers, \(\$ 1,900\).

7 Paid the salary of an assistant, \(\$ 3,500\).

8 Received invoice for January utilities, \(\$ 410\).

9 Paid \(\$ 6,000\) cash for employee salaries.

10 Purchased a van (on January 31 ) for business use, \(\$ 7,200\).

11 Paid \(\$ 150\) to bank as January interest on the outstanding notes payable.

Required

a. Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Van, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item. (Note: The beginning Van account balance is \(\$ 0\). .

b. Show the impact (increase or decrease) of transactions 1-11 on the beginning balances, and total the columns to show that assets equal liabilities plus stockholders' equity as of January 31.