Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Allen Shonton recently opened his own accounting firm on April 1, which he operates as a sole proprietorship. The name of the new entity is

image text in transcribed
image text in transcribed
Allen Shonton recently opened his own accounting firm on April 1, which he operates as a sole proprietorship. The name of the new entity is Allen Shonton, CPA Shonton experienced the following events during the organizing phase of the new business and its first month of operations in 2018: Click the icon to view the transactions.) Read the requirements Requirement 1. Analyze the effects of the events on the accounting equation of the sole proprietorship of Alen Shonton, CPA t: 0 Analyze the events chronologically one transaction at a time, beginning with the transaction on the 5th For each transaction that follows the transaction on the 5th, calculate the balance in each account after analyzing its effect on the accounting equation. Aber calculating the ending balance of each account on the 30th calculate total assets and total liabilities and equity, (Complete only the necessary answer boxes for your transaction lines. Do not enter any zeros for your transaction lines. Carry down all balances to the "Bal" line, including zero balance accounts, entering a for any zero balances. Enter a decrease in an account with a minus sign or parentheses, Abbreviations used: AP Accounts Payable: AR = Accounts Receivable: C80,= Shonton, Capital Exp. Expense: Fum, Furniture, LiabLab.es Rev. Revenue: Sup - Supplies: Ul. Utilities: WithdrShonton, Withdrawals.) ASSETS LIAD. EQUITY Cash + A/R + Office Furn. NP + Cap. Withdr Service Rent Util Sup. Rev. Exp. Exp. uirements A More Info nt 1. Analyze the effects of events chronologically, on ate the balance in each acco otal assets and total liabilitie y down all balances to the eses. Abbreviations used: A Venue: Sup. = Supplies; Utill Jows the transactio Jof each account on Inter any zeros fory base in an account Furn. = Furniture; ASSETS Apr. 5 Shonton deposited $75,000 in a new business bank account titled Allen Shonton, CPA. The business gave capital to Shonton. 6 Paid $300 cash for letterhead stationery for new office. 7 Purchased office furniture for the office on account, $9,500. 10 Consulted with tax client and received $4,000 for services rendered. 11 Paid utilities, $190. 12 Finished tax hearings on behalf of a client and submitted a bil for accounting services, $20,000. 18 Paid office rent, $750. 25 Received amount due from client that was billed on April 12. 27 Paid full amount of accounts payable created on April 7. 30 Shonton withdrew cash of $3,500. Cash + A/R + Offi Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Financial Accounting Information For Decisions

Authors: Author

10th Edition

1260386937, 9781260386936

More Books

Students also viewed these Accounting questions

Question

Describe the Cleverley product costing approach.

Answered: 1 week ago

Question

Buddy Dog Foods management to change its focus?

Answered: 1 week ago