Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.

1. Lita Lopez invested $65,000 cash and office equipment valued at $39,000 in the company.
2. The company purchased an office suite for $42,000 cash.
3. The company purchased office equipment for $5,900 cash.
4. The company purchased $3,700 of office supplies and $1,600 of office equipment on credit.
5. The company paid a local newspaper $830 cash for printing an announcement of the offices opening.
6. The company completed a financial plan for a client and billed that client $4,700 for the service.
7. The company designed a financial plan for another client and immediately collected a $8,700 cash fee.
8. Lita Lopez withdrew $1,400 cash from the company for personal use.
9. The company received $3,700 cash as partial payment from the client described in transaction f.
10. The company made a partial payment of $800 cash on the equipment purchased in transaction d.
11. The company paid $1,700 cash for the office secretarys wages for this period.

Required:

2. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)

Assets

cash + Accounts receivable + office supplies + office equipment + officeSuit = accounts payable + L. Lopez Capital - L. Lopez, withdrawals + revenues - expenses

a.

b.

bal.

c.

bal.

d.

bal.

e.

bal.

f.

bal.

g.

bal.

h.

bal.

i

bal.

j.

bal.

k.

bal.

3. Determine the company's net income.