Consider the following separate situations, identify each as being a sole proprietorship, partnership, corporation, or limited liability company. Description a. Harvey and Louis own NYC Law. Harvey and Louis are jointly liable for partnership debts, b. Physio Products does not pay income taxes and has one owner. The owner has unlimited lability for business debt. C. Oscar, Angela, and Kevin own Accounting Solutions. The business has an indefinite life and pays an additional business income tax. d. IBC Services does not have separate legal existence apart from the one person who owns it.. f AJ Company pays a business income tax and has two owners. Sansa and John own Snow Removal Services. The business does not pay an additional business income tax and the business has an indefinite life. 9. Miguel is the sole owner of Derr Homes. Miguel is personally liable for Derr Home's debt. h. Jeffy Auto is a separate legal entity from its owner, but it does not pay a business income tax. Business Organization Check m Select a transaction that effects the accounting equation as follows: Effects a. The owner invests cash in the business in exchange for its common stock. b. The company pays cash toward an account payable. c. The company purchases supplies for cash. d. The company purchases supplies on credit e. The company pays cash dividends to shareholders. f. The company purchases equipment for cash. Transaction Decreases an asset and decreases a liability. Decreases an asset and decreases equity. Increases an asset and decreases an asset.. Increases an asset and increases a liability. Increases an asset and increases equity. Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner invested $61,000 cash in the company along with equipment that had a $13,000 market value in exchange for its common stock. b. The company paid $3,000 cash for rent of office space for the month. c. The company purchased $18,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $1,600 cash earned. e. The company completed work for a client and sent a bill for $8,500 to be received within 30 days. The company purchased additional equipment for $5,100 cash. g. The company paid an assistant $2,000 cash as wages for the month. h. The company collected $5,700 cash as a partial payment for the amount owed by the client in transaction e The company paid $18.000 cash to settle the liability created in transaction c J. The company paid $1,400 cash in dividends to the owner (sole shareholder) Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) b Assets Liabilities Equity Cash . Accounts Receivable Equipment Accounts Payable Common Stock Dividends Revenues Expenses Bal . 0+ 0 0 o . 0- " . + Bal 0 . . 0 . 0 d . Bal . 0 0 . 0 - 0 0 0 e Bal 0 . + 0 4 0 0 + 0 - 0 + 0- 0 Assets Cash 4 Accounts Receivable Equipment B Liabilities + Accounts Payable Equity Common Stock Dividends + Revenues Expenses a b. . + + + Bal. . 0 + 0 0+ 0 0 + 0 c + Bal 0+ 0 + 0 0 0 0 0 d. . Bal 0+ + 0 0 0 0+ 0 0 " Bal. 0+ 0 . 0 0 0 0 0 0 f. Bal. 4 0 . 0 0+ 0 0 0 0 Bal. 0 0 + 0 0+ 0 0 0 0 h. + Bal. 0 + + 0 = + 0 0 0 0 + = + Bal. 0 + 0 + 0 . 0+ 0 0 + 0 0 + + + + Bal. $ 0 + S 0 + $ 0 $ 0+ $ 0 $ 0+ $ 0 $ 0