Critical Thinking Problem 3.2 (Algo) Sole Proprietorship LO 3-1, 3-2, 3-3, 3-4, 3-5, 3-6 Brenda Jo Smith is an architect who operates her own business. The accounts and transactions for the business follow. Transactions a. Brenda Jo Smith invested $20,000 in cash to start the business b. Paid $2,000 for advertisements in a design magazine c. Purchased office furniture for $4.400 in cash d. Performed services for $6,300 in cash e. Paid $245 for the monthly telephone bill, f. Performed services for $1,700 on credit g. Purchased a fax machine for $500; paid $75 in cash, with the balance due in 30 days. h. Paid a bill for $620 from the office cleaning service, 1. Received $1,680 from clients on account j. Purchased additional office chairs for $615 received credit terms of 30 days. k. Paid $4,700 for salaries 1. Issued a check for $260 in partial payment of the amount owed for office chairs. m. Received $2.440 in cash for services performed n. Issued a check for $530 for utilities expense o. Performed services for $2,220 on credit p. Collected $970 from clients on account q. Brenda Jo Smith withdrew $2,570 in cash for personal expenses. r. Paid $670 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 owner's 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? Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Income Statement Stmt of Owners Eqty Balance Sheet Analyze r. Paid $670 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 owner's 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? Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Income Statement Stmt of Owners Egly Balance Sheet Analyze Prepare a statement of owner's equity. BRENDA JO SMITH, ARCHITECT Statement of Owner's Equity Month Ended January 31, 20X1 1.325