A. For each of the following transactions, apply the accounting equation Asset - Liability and Owner Equity. Use a spreadsheet similar to your lab to prepare each transaction. B. Identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and a "-" to indicate a decrease. N/A for not effect. Use "A", "L", and "E" to indicate assets, liabilities and equity, respectively. 1. Paul invested $200,000 in cash to start up his company. 2. Equipment was purchased for $100,000. A down payment of $30,000 cash was made and a note was signed for the balance of $70,000. 3. Services were rendered to customers for $60,000 and received of $40,000 and the remaining $20,000 would be paid later by the customers. 4. A building was purchased for $200,000 with a down payment of $50,000 and a mortgage note was signed for the balance of $150,000. 5. Supplies of $10,000 were purchased with cash this will be used in the future. 6. Paid the office secretary's salary of $3,000. 7. Cash of $45,000 was received for work to be performed in the future months 8. Cash payment of $12,000 was made as advance payment for 12 months insurance. 9. Dividend of $30,000 cash was paid to the Paul. 10. Paid $3,000 for utilities used in the business. 2. Journal Entries Points 45 AZZ Printing Company completed these transactions during the month of August of the current year, Prepare general journal entries to record these transactions, post to the ledger and prepare the trail balance Aug. 1 Began a Computer services by investing $30,000 cash and an office equipment valued at $70,000. Purchased S1,200 of Copier on credit. Purchased $1,700 of office supplies paid $1,000 in cash and the remaining S700.00 will be paid later. Completed work for a client and immediately received a cash payment of S7,500 cash. Completed work for Mr. Go Cam Back Inc. on credit, $4,000. Paid the remaining amount for the supplies purchased on August 3 Paid $4,800 for the annual insurance policy to be used monthly. Received $2,000 payment in as part payment Mr. Go Cam Back Inc. for the work completed on August 8. 22 Paid S2,300 in salaries to the employees. 27 Paid the owner John $2,000 cash as dividend. Paid $450 cash for the August utility bills. Received $22,000 from a client for computer services to be rendered in September 2 3 4 8 10 14 18 30 30 Based on the following Accounts balance for Kadijatu Kitchen, prepare the Income Statement, Statement of Retained Earnings, and Balance sheet. Kadijatu Samura, the sole stockholder, made no additional investments in the company during the year. Accounts payable 35,300.00 Accounts receivable 48,300.00 Beauty supplies 25,200.00 Beauty supplies expense 5,100.00 Building 240,000.00 278,000.00 Common Stock 360,000.00 Cash Dividends 56,000.00 78,320.00 128,000.00 68,000.00 60,000.00 36,000.00 48,000.00 Equipment Land Notes Payable Notes Receivable Prepaid Rent Rent expense Retained Earning Revenue Salaries Payable Unearned Revenue Utilities Expense Wages Expense Totals 0.00 506,170.00 15,200.00 74,200.00 10,350.00 45,600,00 $2,057,740.00