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 9. Brenda Jo Smith withdrew $2.570 in cash for personal expenses 1. 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 of 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 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 Prepare an income statement. BRENDA JO SMITH, ARCHITECT Income Statement Month Ended January 31, 20X1 Revenue Expenses 4 Total expenses