After several months of planning, Jasmine Worthy started a haircutting business called Expressions. The following events occurred during its first month of business. 1. On August 1, Worthy invested $3,000 cash and $15,000 of equipment in Expressions. 2. On August 2, Expressions paid $600 cash for furniture for the shop. 3. On August 3, Expressions paid $500 cash to rent space in a strip mall for August.

4. On August 4, it purchased $1,200 of equipment on credit for the shop (using a long- term note payable).

5. On August 5, Expressions opened for business. Cash received from haircutting services in the first week and a half of business (ended August 15) was $825. 6. On August 15, it provided $100 of haircutting services on account. 7. On August 17, it received a $100 check for services previously rendered on account. 8. On August 17, it paid $125 cash to an assistant for hours worked during the grand opening. 9. Cash received from services provided during the second half of August was $930. 10. On August 31, it paid a $400 installment toward principal on the note payable entered into on August 4. 11. On August 31, Worthy made a $900 cash withdrawal from the company for personal use. Required [1] Arrange the following asset, liability, and equity titles in a table similar to the one in Exhibit 1.9: Cash; Accounts Receivable; Furniture; Store Equipment; Note Payable; J. Worthy, Capital; J. Worthy, Withdrawals; Revenues; and Expenses. Show the effects of each transaction using the accounting equation. [2] Prepare an income statement for August. [3] Prepare a statement of owners equity for August. [4] Prepare a balance sheet as of August 31. [5] Prepare a statement of cash flows for August.