Kimberly Sam opened her beauty salon business on June 1, 2021. Based on the transactions her business had, below is the transaction analysis completed for the month of June 2021.

Instructions:

1. Based on the transaction analysis table provided, choose any three letters from (b) to (l), and based on the effect on the accounting equation, you are to write the 3 business transactions that occurred during the month, based on the letter you chose. Correct spelling is important (3 pts)
1. Using the transaction analysis final balances at the end of the month (balances in orange font), prepare the following financial statements:

a.an income statement. (7 pts)

b.a statement of owner’s equity (5 pts)

c.a balance sheet (7 pts)

d.a statement of cash flows (10 pts) (focus on the cash column of the transaction analysis)

	ASSETS		=	LIABILITIES +	OWNER’S EQUITY
	Cash	Accounts Receivable	Supplies	Accounts payable	Kimberly Sam, capital	Kimberly Sam, drawings	Service Revenue	-Rent expense	-Salaries Expense	-Supplies Expense	-Repairs expense
a.	+10,000				+10,000
`	10,000				10,000
b.			+3,000	+3,000
bal	10,000		3,000	3,000	10,000
c.		+3,500					3,500
Bal	10,000	3,500	3,000	3,000	10,000		3,500
d.	-1,000							-1,000
bal	9,000	3,500	3,000	3,000	10,000		3,500	1,000
e.	+500				+500
Bal	9,500	3,500	3,000	3,000	10,500		3,500	1,000
f.	+1,050	-1,050
Bal	10,550	2,450	3,000	3,000	10,500		3,500	1,000
g.	+6,000						+6,000
Bal	16,550	2,450	3,000	3,000	10,500		9,500	1,000
h.	-1,500								-1,500
Bal	15,050	2,450	3,000	3,000	10,500		9,500	1,000	1,500
i.	-950			-950
Bal	14,100	2,450	3,000	2,050	10,500		9,500	1,000	1,500
j.	-800					-800
Bal	13,300	2,450	3,000	2,050	10,500	800	9,500	1,000	1,500
k.	-700										-700
Bal	12,600	2,450	3,000	2,050	10,500