1.

Analyze the effects of Canyon CanoeCompany's transactions on the accounting equation.

2.

Prepare the income statement of Canyon Canoe Company for the month ended November30, 2020

2020.

Nov.

1

Annie

Annie Wu

Wu invested $ 22 comma 000

$22,000 cash in the business by opening a bank account in the name of Canyon Canoe Company.

2

The company leased a building and paid $ 1 comma 400

$1,400 for the firstmonth's rent.

3

The company purchased canoes for $ 4 comma 700

$4,700 on account.

4

The company purchased office supplies onaccount, $ 800

$800.

7

The company earned $ 1 comma 650

$1,650 cash for the rental of canoes.

13

The company paid $ 1 comma 550

$1,550 cash for salaries.

15

Annie

Annie Wu

Wu withdrew $ 65

$65 cash from the business for personal use.

16

The company received a bill for $ 160

$160 forutilities, which will be paid later.(Do not use the Accounts Payableaccount.)

20

The company received a bill for $ 200

$200 for cellphone expenses. The bill will be paid later.(Do not use the Accounts Payableaccount.)

22

The company rented canoes to Early Start Daycare onaccount, $ 2 comma 900

$2,900.

26

Canyon Canoe Company paid $ 1 comma 300

$1,300 of the amount owed for the November 3 purchase that was made on account.

28

The company received $ 950

$950 from Early Start Daycare as partial payment for the canoe rental on November 22.

30

Annie

Annie Wu

Wu withdrew $ 85

$85 cash from the business for personal use.