Margaret Jarvis opens a research services business near a college campus. She names the corporation Jarvis Research Inc. During the first month of operations, July 2017, Margaret and the business engage in the following activities:

a. Jarvis Research Inc. issues common shares to Margaret Jarvis, who invests $25,000 to

open the business.

b. The company purchases, on account, office supplies costing $350.

c. Jarvis Research Inc. pays cash of $20,000 to acquire a lot near the campus. The company

intends to use the land as a building site for a business office.

d. Jarvis Research Inc. performs services for clients and receives cash of $1,900.

e. Jarvis Research Inc. pays $100 on the account payable from Transaction (b).

f. Margaret Jarvis pays $2,000 in personal funds for a vacation.

g. Jarvis Research Inc. pays cash expenses for office rent ($400) and utilities ($100).

h. The business sells a small parcel of the land it purchased for its cost of $5,000.

i. The business declares and pays a cash dividend of $1,200.

Requirements:

1. Using Excel, build a spreadsheet to analyze the preceding transactions in terms of their effects on the accounting equation of Jarvis Research Inc.

2. Using Excel, prepare the income statement, statement of retained earnings, and balance sheet of Jarvis Research Inc., after recording the transactions. Draw arrows linking the statements.