Larry Power started a new business in the name of Power Electrical on October 1st 2019, During October a number of activities occurred and the following Totals resulted at October 31st 2019, shown in the following Accounting Equation Format Assets Liability Equity Cash Accounts Receivable Office Supplies Office Equipment Electrical Equipment Accounts Payable Larry Power, Capital $ 30,000 $ 7,000 $ 1,900 $ 28,000 $ 14,000 $ 18,000 $ 62,900 During November, the following Occurred Nov 1 Rented Office space and paid cash for the months rent of $7,200 Nov 3 Purchased electrical equipment for $ 18,000 from an electrician who was going out of business, by using $ 10,000 in personal funds and agreeing to pay the balance in 30 days Nov 5 Purchased Office supplies by paying $ 1,800 cash Nov 6 Completed electrical work and immediately collected $ 2,000 Nov 8 Purchased $ 5,200 of office equipment on credit Nov 15 Completed electrical work on credit in the amount of $ 6,000 Nov 16 Interviewed and hired a part time electrician who will be paid $ 5,300 each month He will begin work in three weeks Nov 18 Purchased $ 1,000 of office supplies on credit Nov 20 Paid for the office equipment purchased on November 8th Nov 24 Billed a client $ 4,800 for electrical work the balance is due in 30 days Nov 28 Received $ 6,000 for the work completed on November 15th Nov 30 Paid the Office Assistants salary of $ 4,400 Nov 30 Paid the monthly utility bills of $ 3,600 Nov 30 Power withdrew $ 1,400 from the business for personal use Required Use addition and subtraction to show the effects of each November activity on the items in the equation Do not determine new totals for the items of the equation after each transaction Next to each change in equity, State that the change was caused by an investment, a Revenue, an Expense or a withdrawal Determine the final total for each item and verify that the equation is in balance Analysis Revenue is not recorded on November 28 Explain using your understanding of GAAP

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Larry Power started a new business in the name of Power Electrical on October 1st 2019, During October a number of activities occurred and the

Larry Power started a new business in the name of Power Electrical on October 1st 2019, During October a number of activities occurred and the following Totals resulted at October 31st 2019, shown in the following Accounting Equation Format: Assets = Liability + Equity Cash + Accounts Receivable + Office Supplies + Office Equipment + Electrical Equipment = Accounts Payable + Larry Power, Capital $ 30,000 $ 7,000 $ 1,900 $ 28,000 $ 14,000 $ 18,000 $ 62,900 During November, the following Occurred; Nov 1. Rented Office space and paid cash for the month’s rent of $7,200. Nov 3. Purchased electrical equipment for $ 18,000 from an electrician who was going out of business, by using $ 10,000 in personal funds and agreeing to pay the balance in 30 days. Nov 5. Purchased Office supplies by paying $ 1,800 cash Nov 6. Completed electrical work and immediately collected $ 2,000. Nov 8. Purchased $ 5,200 of office equipment on credit Nov 15. Completed electrical work on credit in the amount of $ 6,000. Nov 16. Interviewed and hired a part time electrician who will be paid $ 5,300 each month. He will begin work in three weeks. Nov 18. Purchased $ 1,000 of office supplies on credit. Nov 20. Paid for the office equipment purchased on November 8th. Nov 24. Billed a client $ 4,800 for electrical work; the balance is due in 30 days. Nov 28. Received $ 6,000 for the work completed on November 15th . Nov 30. Paid the Office Assistant’s salary of $ 4,400. Nov 30. Paid the monthly utility bills of $ 3,600. Nov 30. Power withdrew $ 1,400 from the business for personal use. Required: Use addition and subtraction to show the effects of each November activity on the items in the equation. Do not determine new totals for the items of the equation after each transaction. Next to each change in equity, State that the change was caused by an investment, a Revenue, an Expense or a withdrawal. Determine the final total for each item and verify that the equation is in balance. Analysis: Revenue is not recorded on November 28. Explain using your understanding of GAAP.