At the beginning of last month, Harley Franks started a barbershop, Harleys Cutters. The following events occurred during the month.

Harley invested $30,000 cash in the company.

Harley purchased $15,000 of equipment for cash.

Harley paid $500 cash to rent space for the first month of operations.

Harley purchased $1,200 of equipment on a note payable.

Cash received from haircutting services for the first half of the month was $900.

Harley provided $200 of haircutting services on account.

Harley received and deposited a $100 check for the services previously provided.

Harley paid $200 cash to an assistant for hours worked during the grand opening.

Cash received from services provided during the second half of the month was $1,000.

Harley paid $400 towards the principal on the note payable.

Harley made a $900 cash withdrawal from the company.

Requirements:

Complete the accounting equation worksheet for the transactions.

Total the worksheet and verify that Assets = Liabilities + Equity.

Harleys Cutters

Accounting Equation Worksheet

Assets = Liab + Equity

Cash Acc Rec PPE Note Pay Capital Draws Rev Exp

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* * * Total All Columns to the Total Line * * *

PPE = Property, Plant & Equipment