1. Financial Accounting (financial statement preparation problem

A. Joe established his law firm on January 2, 2019. Deposited $20,000 in his business checking account. This is considered his starting capital.

B. January 3, Purchased a computer for $3,000. Paid $1500 and signed a note for the balance. This computer is supposed to be depreciated on straight line basis for 60-month straight line basis.

C. January 5, purchased $2,400 office supplies which he used only 1/3 by the end of the first quarter 2019

D. Billed a client for $2,500 for his services

E. Hired a part time assistant for $1,000 a month

F. Received $3,000 cash from a client

G. He withdrew $2,000 for his personal use

Required: Establish T-accounts (2pts), prepare trial balance(2pts), income statement(2pts), owners equity(2pts) statement and the balance sheet(2pts) for the first quarter of 2020 ending on March 31, 2020