Discussion #1 - In preparing the income statement the company reported net income based on revenues minus drawings and expenses. Do you agree the net income was properly recorded? Explain. (6 points) Discussion #2 - Is it unfair for the State od Georgia to require the new corporation to file a charter and does not require the proprietorship and partnership to do the same? Explain (6 points) Discussion #3 - Do you agree when a company purchases supplies it should always be recorded in the supplies account? Explain ( 6 points) NOTE: THE NEXT PAGE IS BLANK JUST IN CASE YOU NEED ADDITIONAL SPACE TO ANSWER THE DISCUSSION QUESTIONS. THE PROBLEM WILL FOLLOW THE BLANK PAGE Discussion #1 - In preparing the income statement the company reported net income based on revenues minus drawings and expenses. Do you agree the net income was properly recorded? Explain. (6 points) Discussion #2 - Is it unfair for the State od Georgia to require the new corporation to file a charter and does not require the proprietorship and partnership to do the same? Explain (6 points) Discussion #3 - Do you agree when a company purchases supplies it should always be recorded in the supplies account? Explain ( 6 points) NOTE: THE NEXT PAGE IS BLANK JUST IN CASE YOU NEED ADDITIONAL SPACE TO ANSWER THE DISCUSSION QUESTIONS. THE PROBLEM WILL FOLLOW THE BLANK PAGE Problem #1 Kimberly McDonald opened a law office, Kimberly McDonald, Attorney at Law, on July 1, 2017 On July 31, the balance sheet showed Cash $10,000, Accounts Receivable $3,000, Supplies $1,000, Office Equipment $12,000, Accounts Payable $8,400, and Owner's Capital $17,600. During August the following transactions occurred. 1. Collected $2,800 of accounts receivable. 2. Paid $5,400 cash on accounts payable. 3. Recognized revenue of $18,000 of which $6,000 is collected in cash and the balance is due in September 4. Purchased additional equipment for $2,000, paying $800 in cash and the balance on account. 5. Paid salaries $6,000, rent for August $1,800, and advertising expenses $700 6. Withdrew $1,500 in cash for personal use. 7. Received $8,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $1,100. Instructions 1. (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash, Accounts Receivable, Supplies, Equipment, Notes Payable, Accounts Payable, Owner's Capital , Owner's Drawings, Revenues, Expenses. (46 points) 2. (b) Prepare an income statement for August, an owner's equity statement for August, and a balance sheet at August 31. (Each financial statement is worth 12 points) NOTE: THE NEXT TWO PAGES ARE BLANK JUST IN YOU DECIDE TO PEPARE THE FINANCIAL STATEMENTS IN A WORD DOCUMENT. AN EXCEL SPREADSHEET IS ATTACHED SEPARATELY JUST IN YOU DECIDE TO PREPARE THE TRANSACTIONS AND/OR FINANCIAL STATEMENTS IN EXCEL Problem #1 Kimberly McDonald opened a law office, Kimberly McDonald, Attorney at Law, on July 1, 2017. On July 31, the balance sheet showed Cash $10,000, Accounts Receivable $3,000, Supplies $1,000, Office Equipment $12,000, Accounts Payable $8,400, and Owner's Capital $17,600. During August the following transactions occurred. 1. Collected $2,800 of accounts receivable. 2. Paid $5,400 cash on accounts payable. 3. Recognized revenue of $18,000 of which $6,000 is collected in cash and the balance is due in September 4. Purchased additional equipment for $2,000, paying $800 in cash and the balance on account. Instructions 5. Paid salaries $6,000, rent for August $1,800, and advertising expenses $700 6. Withdrew $1,500 in cash for personal use. 7. Received $8,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $1,100. 1. (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash, Accounts Receivable, Supplies, Equipment, Notes Payable, Accounts Payable, Owner's Capital, Owner's Drawings, Revenues, Expenses. (46 points) 2. (b) Prepare an income statement for August, an owner's equity statement for August, and a balance sheet at August 31. (Each financial statement is worth 12 points) NOTE: THE NEXT TWO PAGES ARE BLANK JUST IN YOU DECIDE TO PEPARE THE FINANCIAL STATEMENTS IN A WORD DOCUMENT. AN EXCEL SPREADSHEET IS ATTACHED SEPARATELY JUST IN YOU DECIDE TO PREPARE THE TRANSACTIONS AND/OR FINANCIAL STATEMENTS IN EXCEL