Financial Accounting PROJECT #1 PART A: Accounting Equation: ASSETS = LIABILITIES + EQUITY Transaction# Accounts Accounts Notes Common ----Retained Earnings----- Cash Equipment Receivable Supplies Payable Payable Stock Account 1 2 3 4 5 6 7 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ TOTALS $0 $0 $0 $0 $0 $0 $0 $0 Total Assets = $0 Total Liabilities = $0 Total Equity = $0 REQUIRED: A) account for the following transactions using the Accounting Equation above (use 1 row for each transaction) B) After completing the Accounting Equation, prepare an Income Statement and a Balance Sheet for the month of July, 2017 for Strand Corp Transactions: 1 Strand invested $25,000 in the business in exchange for common stock 2 Strand purchased equipment costing $10,000 by borrowing from the bank 3 Strand sold $100,000 worth of consulting services on account 4 Strand paid Wages of $50,000 and Rent of $25,000 5 Strand purchased $2,000 of supplies on account 6 Strand collected $75,000 from customers sold to on account (#3 above) 7 Strand paid the bank 50% of what they owed them PART B: Make your own Journal Entries (debits & credits) for the following typical type of adjustments to accounts (use your own numbers): 1) adjust a co's Prepaid Insurance account at year-end 2) recognize an accrued Liability and corresponding Expense at year-end 3) recognize Depreciation Exp at year-end 4) adjust a co's Unearned Revenue account at year-end Note: include explanations with your adjusting entries