Blake Dubis practiced law with a partnership for five years after graduating from law school. Recently he resigned his position to open his own law office, which he operates as a proprietorship. The name of the new entity is Blake Dubis, Attorney. Dubis experienced the following events during the organizing phase of his new business and its first month of oper- ations. Some of the events were personal and did not affect his law practice. Others were busi- ness transactions and should be accounted for by the business. Feb. 4 5 6 7 10 11 12 18 25 28 Required Dubis received $90,000 cash from his former law-firm partners. C Dubis deposited $80,000 cash in a new business bank account entitled Blake Dubis, Attorney. Dubis paid $300 cash for letterhead stationery for his new law office. Dubis purchased office furniture for his law office. He agreed to pay the account payable. $7,000, within six months. Dubis sold 500 shares of IBM stock, which he and his wife had owned for several C years, receiving $75,000 cash from his stockbroker. Dubis deposited the $75,000 cash from sale of the IBM stock in his personal bank C account. A representative of a large company telephoned Dubis and told him of the com-f pany's intention to transfer its legal business to the new entity of Blake Dubis, Attorney. Dubis finished court hearings on behalf of a client and submitted his bill for legal 4 services, $5,000. Dubis expected to collect from this client within two weeks. Dubis paid office rent. $1.000. A Dubis withdrew $1,000 cash from the business for personal living expenses. C 1. Classify each of these events as one of the following:

a. A business transaction to be accounted for by the proprietorship of Blake Dubis. Attorney.

b. A business-related event but not a transaction to be accounted for by the proprietor- ship of Blake Dubis, Attorney.

c. A personal transaction not to be accounted for by the proprietorship of Blake Dubis. Attorney 2. Analyze the effects of the above events on the accounting equation of the proprietorship of Blake Dubis, Attorney. Use a format similar to that in Exhibit 1-6.