Joel Clark owns and operates an interior design studio called Clark Design Studio. The following amounts summarize the financial position of his business on April 30. 20X5: Assets = Liabilities + Owner's Equity Accounts Accounts Joel Clark, Bal. Cash + Receivable + Supplies + Land 1.720 3,240 Payable + 24.100 5.400 Capital 23.660 During May 20X5, the following events occurred.

a. Clark received $12,000 as a gift and deposited the cash in the business bank account.

b. Paid off the beginning balance of accounts payable.

c. Performed services for a client and received cash of $1,100.

d. Collected cash from a customer on account. $750.

e. Purchased supplies on account. $720.

f. Consulted on the interior design of a major office building and billed the client for ser- vices rendered. $5,000. g. Invested personal cash of $1.700 in the business. h. Recorded the following business expenses for the month: (1) Paid office rent, $1,200. (2) Paid advertising. $660. i. Sold supplies to another interior designer for $80 cash, which was the cost of the supplies. j. Withdrew cash of $1.400 for personal use. Required 1. Analyze the effects of the preceding transactions on the accounting equation of Clark Design Studio. Adapt the format of Exhibit 1-6. 2. Prepare the income statement of Clark Design Studio for the month ended May 31. 20X5. List expenses in decreasing order by amount. 3. Prepare the statement of owner's equity of Clark Design Studio for the month ended May 31, 20X5. 4. Prepare the balance sheet of Clark Design Studio at May 31, 20X5.