Learning Objectives 7, 8, 9 Check Figure Net income = $760; balance sheet totals = $22,860 Lear Problem 1-5A Objective: To record business transactions and prepare financial statements Jeff Edwards, CPA, started his practice on September 1, 20X1. He completed the following transactions during his first month of operations: (a) Jeff invested the following in the firm: cash, $12,400; office supplies, $700; office equipment, $4,500. (b) Paid rent for the month, $550. (c) Purchased a computer for $3,700 on credit. (d) Purchased a copier for $8,000, paying $500 down and agreeing to pay the balance in three equal installments. (e) Performed services for cash, $1,025. () Jeff wrote business checks for personal bills, $500. (g) Purchased a printer for cash, $600. (h) Purchased printer ink for cash, $110. (1) Performed services on credit, $1,200. (1) Paid utilities for the month, $315. (k) Paid cash for a new desk for Jeff's office, $850. (1) Collected $750 for the services performed in Transaction (1). (m) Paid for the computer purchased in Transaction (c), $3,700. (n) Paid salary of part-time employee, $600. (o) Paid first installment due on the copier purchased in Transaction (d), $2,500. Directions: 1. Record Jeff's September transactions in an expanded accounting equation with the following headings. Use the Description column to provide a brief explanation of each transaction involving owner's equity, such as rent expense, fees earned, or withdrawal. [Calculate balances only after Transaction (o).] Che End $7 Assets Accounts Office Office + Receivable + Supplies + Equipment Liabilities + Accounts Payable + Owner's Equity Jeff Edwards, Capital + Revenue Expenses Description Cash 2. Prepare an income statement for September. 3. Prepare a statement of owner's equity for September. 4. Prepare a September 30 balance sheet in account form