Abraham Woody practiced accounting with a partnership for five years. Recently he opened his own accounting firm, which he operates as a proprietorship. The name of the new entity is Abraham Woody, CPA. Woody experienced the following events during the organizing phase of his new business and its first month of operations. Some of the events were personal and did not affect the business.

Requirements 

1. Analyze the effects of the events on the accounting equation of the proprietorship of Abraham Woody, CPA.

2. At February 28 , compute:

a. Total assets

b. Total liabilities 

c. Total owner's equity

d. Net income or net loss for February.

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Feb. 4 Received $75,000 cash from former accounting partners. 5 Deposited $60,000 cash in a new business bank account titled Abraham Woody, CPA. 6 Paid $300 cash for letterhead stationery for the new office. 7 Purchased office furniture for the office. Woody agreed to pay the account payable, $7,000, within 3 months. 10 Sold personal investment in Amazon.com stock, which he had owned for several years, receiving $50,000 cash. 11 Deposited the $50,000 cash from sale of the Amazon stock in his personal bank account. 12 A representative of a large company telephoned Woody and told him of the company's intention to transfer its accounting business to Woody. 18 Finished tax hearings on behalf of a client and submitted a bill for accounting services, $5,000. Woody expected to collect from this client within two weeks. 25 Paid office rent, $1,000. 28 Withdrew $3,000 cash from the business for personal use.