Service provides commercial and industrial appraisals and feasibility studies. On January 1 , the assets and liabilities of the business were the following: Cash, \(\$ 8,700\); Accounts Receivable, \(\$ 18,800\); Accounts Payable, \(\$ 5,200\); and Notes Payable, \(\$ 6,500\). Assume that Retained Earnings as of January 1 were \(\$ 1,000\). The balance of Common Stock was \(\$ 14,800\). The following transactions occurred during the month of January:

1 Paid rent for January, \(\$ 1,500\).

2 Received \(\$ 9,800\) on customers' accounts.

3 Paid \(\$ 900\) on accounts payable.

4 Received \(\$ 900\) for services performed for cash customers.

5 Borrowed \(\$ 8,000\) from a bank and signed a note payable for that amount.

6 Billed the city \(\$ 7,800\) for a feasibility study performed; billed various other credit customers, \(\$ 3,500\).

7 Paid salary of assistant, \(\$ 4,500\).

8 Received invoice for January utilities, \(\$ 610\).

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

10 Purchased a van (on January 31) for business use, \(\$ 9,800\) cash.

11 Paid \(\$ 400\) to the bank as January interest on an outstanding note 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 January 1 balances below each item. The beginning Van amount 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.