Question
Attorney Anna Pivone experienced the following events during the organizing phase of the new business and its first month of operation, March 2024. Some of
Attorney Anna Pivone experienced the following events during the organizing phase of the new business and its first month of operation, March 2024. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business.
Mar. 1 | Sold personal investment in Amazon stock, which she had owned for several years, receiving $25,000 cash. |
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Mar. 2 | Deposited the $25,000 cash from the sale of the Amazon stock in her personal bank account. |
Mar. 3 | Deposited $95,000 cash in a new business bank account titled Anna Pivone, Attorney. The business gave capital to Pivone. |
Mar. 5 | Paid $550 cash for ink cartridges for the printer. |
Mar. 7 | Purchased computer for the law office, agreeing to pay the account, $6,500, within three months. |
Mar. 9 | Received $2,900 cash from customers for services rendered. |
Mar. 15 | Received bill from The Lawyer for magazine subscription, $150. (Use Miscellaneous Expense account.) |
Mar. 23 | Finished court hearings on behalf of a client and submitted a bill for legal services, $11,000, on account. |
Mar. 28 | Paid bill from The Lawyer. |
Mar. 30 | Paid utilities, $1,400. |
Mar. 31 | Received $3,100 cash from clients billed on March 23. |
Mar. 31 | Anna Pivone withdrew cash of $1,000. |
Requirement 1. Analyze the effects of the preceding events on the accounting equation of Anna Pivone, Attorney.
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