Abby Perry recently opened her own law office on March 1, which she operates as a sole proprietorship. The name of the new entity is Abby Perry, Attorney. Perry experienced the following events during the organizing phase of the new business and its first month operation, March 2018. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business.

Requirement 1. Analyze the effects of the preceding events on the accounting equation of Abby Perry, Attorney.

Requirement 2. Prepare the financial statements.

a. Income Statement

b. Statement of Owner's Equity

c. Balance Sheet

d. Statement of Cash Flows

a More Info - X Mar. 1 Sold personal investment in Amazon.com stock, which she had owned for several years, receiving $28,000 cash. 2 Deposited the $28,000 cash from the sale of the Amazon.com stock in her personal bank account. 3 Deposited $65,000 cash in a new business bank account titled Abby Perry, Attorney. The business gave capital to Perry 5 Paid $500 cash for ink cartridges for the printer. 7 Purchased computer for the law office, agreeing to pay the account, $7,500, within three months. 9 Received $3,800 cash from customers for services rendered. 15 Received bill from The Lawyer for magazine subscription, $390. (Use Miscellaneous Expense account.) 23 Finished court hearings on behalf of a client and submitted a bill for legal services, $8,000, on account. 28 Paid bill from The Lawyer. 30 Paid utilities, $900. 31 Received $3,100 cash from clients billed on March 23. 31 Perry withdrew cash of $3,000. Print Print Done Done