Jennifer White recently formed Southwest Land Design to fill a need for designing, installing and maintaining natural, desert oriented residential landscaping. In January of this year, its first month of operations, the following transactions occurred. 1. White invests $200,000 of her own money into the company. 2. Purchased an office building for $150,000 in cash. The building is valued at $110,000, and the remainder of the value is assigned to the land. 3. Signed a three-year promissory note at the bank for $125,000. 4. Purchased office equipment at a cost of $50,000, paying $10,000 down and agreeing to pay the remainder in 10 days. 5. Paid wages and salaries of $13,000 for the first half of the month. Office employees are paid twice per month 6. Paid the balance on the office equipment from transaction #4. 7. Sold $54,000 of advertising during the first month. Customers have until the 15th of the following month to pay their bills. 8. Paid wages and salaries of $15,000 for the second half of the month. 9. Recorded $3,500 in commissions earned by the sales people during the month. They will be paid on the fifth of the following month. 10. White draws $10,000 from the company as her salary for the month. Complete the accounting equation worksheet for transactions 1-10. Total the worksheet and verify that Assets - Liabilities + Equity. In proper order and form, prepare and income statement and balance sheet Southwest Land Design Transactions for January ASSETS LIABILITIES EQUITY Accounts Receivable Office Equipment Accounts Payable Commissions Payable Notes Payable + Land Cash Building Amount Description 1. 2 3. 4 5. 6. 7. B. 9 10 Totals Assets Liabilities Equity - Southwest Land Design Income Statement For the Month Ending January 31, 20XX Advertising Revenue $ Expenses Wages & Salaries Expense Commissions Expense Total Expenses Net Income $ Southwest Land Design Balance Sheet January 31, 20XX $ Assets Cash Accounts receivable Land Office Equipment Building Total Assets Liabilities and Equity Liabilities Commissions Payable Notes Payable Total Liabilities $ Equity White Capital, January 31, 20XX Total Liabilities & Equity