3. Net income

Problem 1-8A Analyzing effects of transactions LO C4, P1, P2, A1 Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its frst year of operations a. Lita Lopez invests $68,000 cash and office equipment valued at $39,000 in the company b. The company purchased a $312.000 building to use as an office Biz Consulting paid $42.000 in cash and signed a note payable promising to pay the $270,000 balance over the next 10 years c. The company purchased ofice equipment for $5,600 cash d. The company purchased $3,900 of office supplies and $1,000 of office equipment on e. The company paid a local newspaper $860 cash for printing f. The company completed a financial plan for a client and billed that client $4,600 for the service an announcement of the office's opening company designed a financial plan for another clent and immediately collected a $8,700 cash fee h. Lita Lopez withdrew $1,100 cash from the company for personal use . The company made a partial payment of $500 cash on the equipment purchased in transaction d k. The company paid $2 200 cash for the office secretary's wages for this period 2. Enter the amount of each transaction on individual items of the accounting equation (Reductions in account balances should be indicated with a minus sign Equity Assets Office Office Accounts Lopez Cash Receivable Supplies EquipmentBuild a$ 68,000 (4.200) 63,800 (5,600) 58.200 58 2001 + Bal Bal Bal 116,400 Bal 16,400 Bal 116,400 Bal 16,400 Bal 116,400 Bal 116,400 Bal 16,400 Bal S 116,400+S