Critical Thinking Problem $3\mathrm{.}2($Algo$)$ Sole Proprietorship LO $3-1,3-2,3-3,3-4,3-5,3-6$

Sara$-$Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business follow.

Transactions

a$.$ Sara$-$Jayne Parsons Invested $$20,000$ in cash to start the business

b$.$ Pald $$2,000$ for advertisements in a design magazine.

c$.$ Purchased furnlture for $$4,400$ in cash.

d$.$ Performed services for $$6,300$ in cash.

e$.$ Pald $$245$ for the monthly telephone bill.

f$.$ Performed services for $$1,700$ on credit.

g$.$ Purchased equipment, a fax machine, for $$500$; pald $$75$ In cash, with the balance due in $30$ days.

$h.$ Pald a bill for $$620$ from the office cleaning service $($deblt miscellaneous expense$).$

l$.$ Recelved $$1,680$ from clients on account.

J$.$ Purchased furnlture $($office chalrs$)$ for $$615$; recelved credit terms of $30$ days.

k$.$ Pald $$4,700$ for salarles.

I. Issued a check for $$260$ in partlal payment of the amount owed for furniture $($office chalrs$).$

m$.$ Recelved $$2,440$ in cash for services performed.

n$.$ Issued a check for $$530$ for utilltles expense

o$.$ Performed services for $$2,220$ on credit

p$.$ Collected $$970$ from clients on account.

q$.$ Sara$-$Jayne Parsons withdrew $$2,570$ in cash for personal expenses.

r$.$ Pald $$670$ to Qulck Copy for photocopy work performed during the month $($deblt miscellaneous expense$).$

$($HInt: Include office cleanlng services and photocopy expenses under "Miscellaneous Expense".$)$

Required:

$(1)$ Post the above transactions Into the approprlate T accounts.

$(2)$ Determine the account balances. Prepare a trlal balance, an Income statement, a statement of owner's equity, and a balance sheet

for Sara$-$Jayne Parsons, Archltect.

Analyze:

Using the basic accounting equation, what Is the financlal condition of Sara$-$Jayne Parsons's business at the end of the month?

Complete this question by entering your answers in the tabs below.

Post the above transactions into the appropriate $T$ accounts.