Carl Redmon completed these transactions during the first half of December;

Requirements 

1. Analyze the effects of Redmon's transactions on the accounting equation. Use the format to include these headings: Cash, Accounts Receivable, Supplies, Equipment, Furniture, Accounts Payable, and Carl Redmon, Capital.

2. Prepare the income statement of Redmon Consulting for the month ended December 31, 2007. List expenses in decreasing order by amount.

3. Prepare the statement of owner's equity for the month ended December 31, 2007.

4. Prepare the balance sheet at December 31, 2007.

Transcribed Image Text:

Dec. 2 Invested $10,000 to start a consulting practice titled Redmon Consulting. 2 Paid monthly office rent, $500. 3 Paid cash for a Dell computer, $2,000. This equipment is expected to remain in service for five years. 4 Purchased office furniture on account, $3,600. The furniture should last for five years. 5 Purchased supplies on account, $300. 9 Performed consulting service for a client on account, $1,700. 12 Paid utility expenses, $200. 18 Performed service for a client and received cash of $800.