Charli retired after $20$ years of working in the logistics industry. Charli decides it would be fun to become a dog groomer and open her own shop called "Chali's Grooming." She will run the business out of her home for the first couple of months while she identifies a new location for her store.

Since her prior career included years of logistics$,$ she is also going to operate a consulting practice where she will help others create a grooming practice. She will charge a flat fee or a per hour charge. Her consulting practice will be recognized as service revenue and will provide additional revenue while she develops her grooming practice.

She obtains a groomer's license after the required training and is ready to open her shop on August $1.$ The following are the transactions from the first month of business:

Date

Transaction

Aug. $1$

Aug. $3$

Aug. $3$

Aug. $6$

Aug. $10$

Charli issues shares of common stock in exchange for $$70,000$ cash.

Charli purchases grooming equipment for $$45,000$;$$37,500$ was paid immediately with cash, and the remaining $$7,500$ was billed to Charli with payment due in $30$ days. She decided to buy used equipment because she was not sure if she truly wanted to run a grooming business, She assumed that she will replace the used equipment with new equipment within a couple of years.

Charli purchases supplies for $$300$ cash.

Charli provides $$4,000$ in services to a customer who asks to be billed for the services.