Amy Fisk practiced law with a partnership for 10 years. Recently she opened her own law office, which she operates as a proprietorship. The name of the new entity is Amy Fisk, Attorney. Fisk experienced the following events during the organizing phase of the new business and its first month of operation. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business.

Requirements 

1. Analyze the effects of the preceding events on the accounting equation of the proprietorship of Amy Fisk, Attorney.

2. At July 31, compute the business's

a. Total assets

b. Total liabilities

c. Total owner's equity

d. Net income or net loss for the month.

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July 1 Sold personal investment in eBay stock, which she had owned for several years, receiving $29,000 cash. 2 Deposited the $29,000 cash from sale of the eBay stock in her personal bank account. 3 Received $150,000 cash from former law partners. 5 Deposited $100,000 cash in a new business bank account titled Amy Fisk, Attorney. 6 A representative of a large company telephoned Fisk and told her of the company's intention to transfer its legal business to Amy Fisk, Attorney. 7 Paid $500 cash for letterhead stationery for the new law office. 9 Purchased office furniture for the law office, agreeing to pay the account, $9,500, within 3 months. 23 Finished court hearings on behalf of a client and submitted a bill for legal services, $3,000, on account. 30 31 Paid office rent, $1,500. Withdrew $5,000 cash from the business for personal use.