After graduating from Hogwarts school of witchcraft and wizardry, and following in his brothers footsteps, Ron Weasley decided to open his own store, Magical Accessory by Ron. He opened it as of the first of last month.

Account for the effect of the following transactions on the accounting equation for Magical.

1. Initial investment by Ron was $90,000 cash and office equipment valued at $25,000.

2. Purchased land valued at $40,000 and a building valued at $160,000 on a long-term note payable.

3. Purchased $2,000 of magical supplies from Ollivanders Wands, on credit.

4. Ron also invested his personal automobile, valued at $16,500, in the business.

5. Purchased $5,600 of additional office equipment on credit.

6. Paid $1,800 cash salary to an assistant, Dobbie.

7. Provided services to a cilent who shall not be named and collected $8,000 cash.

8. Paid $635 Cash for this months utilities.

9. Paid $2,000 cash to pay off the magical supplies purchased in transaction #3.

10. Purchased $20,300 of new office equipment by paying cash.

11. Completed $6,250 of services for a client.

12. Paid $1,800 cash salary to an assistant, Dobbie again.

13. Received $4,000 cash in partial payment on the receivable created in transaction #11.

14. Withdrew $2,800 cash from the company for personal use.

Requirements:

1. Use the attached T-accounts to summarize the preceding transactions as they affect the accounting equation. Identify each transaction by number. Correctly total each account.

2. In good order and form, prepare a Trial Balance.

Part I Part I Cash