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 accurving equation of the sole proprietorship of Allen Shonton, CPA 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 Alle 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 "Balline, including zoro balance accounts, entering for any zoro balances Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P Accounts Payable: AR Accounts Receivable: Cap. Shonton, Capital Exp. Expense Fun - Furniture: Liab. Liabilities Rev. Revenue: Sup. Supplies; Util U s : Withdir. Shonton Withdrawals) FCO LIAB ASSETS AR Oltco EQUITY + Service Cash Fum Cap. With US Rent Sup her in the fields and then dick Check Answer view the transactions.) ats. i More Info alyze the effects of chronologically, or alance in each acco ts and total liabilitie all balances to the obreviations used: A Sup. = Supplies; Util lows the transac of each account Inter any zeros fc pase in an accou Furn. = Furnitur ASSETS A/R + Offi + 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 bill 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. Su Print Done mber in the edit fields and then click Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Personal Financial Planning

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

15th Edition

9780357438480

Students also viewed these Accounting questions