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Problem 1-8A Analyzing effects of transactions C4 P1 P2 A1 Amer Kassem started Najm Consulting, a new business, and completed the following transactions during its

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Problem 1-8A Analyzing effects of transactions C4 P1 P2 A1 Amer Kassem started Najm Consulting, a new business, and completed the following transactions during its first year of operations. a. Amer Kassem invests $70,000 cash and office equipment valued at $10,000 in the company. b. The company purchased a $150,000 building to use as an office. Najm Consulting paid $20,000 in cash and signed a note payable promising to pay the $130,000 balance over the next 10 years. C. The company purchased office equipment for $15,000 cash. d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit. e. The company paid a local newspaper $500 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $2,800 for the service. g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee. h. Amer Kassem withdrew $3,275 cash from the company for personal use. I. The company received $1,800 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $700 cash on the equipment purchased in transaction d. k. The company paid $1,800 cash for the office secretary's wages for this period, Required 1. Create a table like the one in Exhibit 1.9, using the following headings for the columns: Cash; Accounts Receivable; Office Supplies; Office Equipment Building; Accounts Payable; Notes Payable; A. Kassem, Capital; A. Kassem, Withdrawals; Revenues; and Expenses 2. Use additions and subtractions within the table created in part 1 to show the dollar effects of each transaction on individual items of the accounting equation. Show new balances after each transaction. 3. Once you have completed the table, determine the company's net income. Check (2) Ending balances: Cash, $34,525; Expenses, $2,300; Notes Payable, $130,000 (3) Net income, $4,500

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