Brenda Jo Smith is an architect who operates her own business. The accounts and transactions for the business follow.

Transactions

Brenda Jo Smith invested $20,000 in cash to start the business.

Paid $2,000 for advertisements in a design magazine.

Purchased office furniture for $2,300 in cash.

Performed services for $4,550 in cash.

Paid $210 for the monthly telephone bill.

Performed services for $1,560 on credit.

Purchased a fax machine for $325; paid $75 in cash, with the balance due in 30 days.

Paid a bill for $550 from the office cleaning service.

Received $2,130 from clients on account.

Purchased additional office chairs for $545; received credit terms of 30 days.

Paid $4,000 for salaries.

Issued a check for $225 in partial payment of the amount owed for office chairs.

Received $2,300 in cash for services performed.

Issued a check for $460 for utilities expense.

Performed services for $2,150 on credit.

Collected $900 from clients on account.

Brenda Jo Smith withdrew $2,500 in cash for personal expenses.

Paid $600 to Copy Quick for photocopy work performed during the month.

(Hint: Include office cleaning services and photocopy expenses under "Miscellaneous Expense".)

Required:

(1) Post the above transactions into the appropriate T accounts.

(2) Determine the account balances. Prepare a trial balance, an income statement, a statement of owners equity, and a balance sheet for Brenda Jo Smith, Architect.

Analyze:

Using the basic accounting equation, what is the financial condition of Brenda Jo Smith's business at month-end?