Jannelle Richards has worked as a graphic designer for more than 5 years. She decided to open her own

graphic design business as of the first of last month, which is known as Sonoran Graphic Designs.

Account for the effect of the following transactions on the accounting equation for Sonoran.

1. Initial investment by Jannelle Richards, $25,000.

2. Purchased office supplies from OfficeMax for $1,500, on credit.

3. Paid $4,500 on a 6-month office rental contract.

4. Purchases $9,000 of office furniture from Ikea, on account.

5. Paid $6,000 for a new computer and printer (Equipment).

6. Received $9,600 in cash from sales for the first half of the month.

7. For the first half of the month, sales on account totaled $5,100.

8. Received $3,000 cash advance from a customer to develop a graphic design project.

9. Paid part-time assistant $1,000 for 2-weeks wages.

10. Paid telephone bill for the month of $350.

11. Received utility bill from APS for $200.

12. Collected cash from credit sales of $3,200.

13. Recorded rental expense for first month, $750.

14. Received $6,900 in cash from sales for the second half of the month.

15. Paid part-time assistant $1,000 for 2-weeks wages.

16. Paid Ikea $5,000 on account.

17. Withdrew $12,000 for personal use.

Requirements:

1. Use the attached T-Account Page to summarize the preceding transactions as they affect the

accounting equation. Identify each transaction by number. Correctly total each account.

2. In good order and form, prepare a Trial Balance