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Assets = Liabilities + Equity Cash + Accounts Receivable + Office Supplies + Office Equip. + Electrical Equip. = Accounts Payable + Larry Power, Capital

Assets = Liabilities + Equity
Cash + Accounts Receivable + Office Supplies + Office Equip. + Electrical Equip. = Accounts Payable + Larry Power, Capital
$32,000+ $7,200+ $2,100+ $30,000+ $15,000= $20,000+ $66,300
During November, the following occurred:
Nov. 1 Rented office space and paid cash for the months rent of $7,400.
3 Purchased electrical equipment for $20,000 from an electrician who was going out of business, by using $11,000 in personal funds and agreeing to pay the balance in 30 days.
5 Purchased office supplies by paying $2,000 cash.
6 Completed electrical work and immediately collected $2,200 for doing the work.
8 Purchased $5,400 of office equipment on credit.
15 Completed electrical work on credit in the amount of $6,200.
16 Interviewed and hired a part-time electrician who will be paid $5,500 each month. He will begin work in three weeks.
18 Purchased $1,200 of office supplies on credit.
20 Paid for the office equipment purchased on November 8.
24 Billed a client $4,900 for electrical work; the balance is due in 30 days.
28 Received $6,200 for the work completed on November 15.
30 Paid the office assistants salary of $4,600.
30 Paid the monthly utility bills of $3,800.
30 Power withdrew $1,600 from the business for personal use.
The following table shows the effects of each November activity on the items in the equation.
Cash Accounts Receivable Office Supplies Office Equip. Electrical Equip. Accounts Payable Larry Power,Capital Explanation of Equity Transaction
Bal. Oct. 31 $ 32,000 $ 7,200 $ 2,100 $ 30,000 $ 15,000 $ 20,000 $ 66,300
Nov. 17,4007,400 Rent expense
3+11,000+11,000 Investment by owner
311,000+$ 20,000+$ 9,000
52,000+2,000
6+2,200+2,200 Electrical fees earned
8+5,400+5,400
15+6,200+6,200 Electrical fees earned
16
18+1,200+1,200
205,4005,400
24+4,900+4,900 Electrical fees earned
28+6,2006,200
304,6004,600 Salaries expense
303,8003,800 Utilities expense
301,6001,600 Withdrawal by owner
$ 15,600 $ 12,100 $ 5,300 $ 35,400 $ 35,000 $ 30,200 $ 73,200
$ 103,400= $ 103,400
Required:
1. Using the above information, prepare an income statement.
2. Using the above information, prepare a statement of changes in equity.
3. Using the above information, prepare a balance sheet.

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