Part 1

(LO3/4) following (g): $12,950 EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. (a) Invested cash in business, $18,000. E 2-3B (b) Bought office supplies for $4,600: $2,000 in cash and $2,600 on account. Assets follow (c) Paid one-year insurance premium, $1,200. (d) Earned revenues totaling $3,300: $1,300 in cash and $2,000 on account. (e) Paid cash on account to the company that supplied the office supplies in transaction (b), $2,300. (f) Paid office rent for the month, $750. (g) Withdrew cash for personal use, $100. E 2-4B / Assets foll REQUIRED Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital - Drawing + Revenues - Expenses). After transaction (g), report the totals for each element Demonstrate that the accounting equation has remained in balance. (LO5) INCOME STATEMENT Based on Problem 2-9A, prepare an income statement for e: $2,550 Jay Pembroke for the month of April 20