Problem 1-8A Analyzing effects of transactions LO P1, A1 Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $60,000 cash and office equipment valued at $33,000 in the company in exchange for its common stock. b. The company purchased an office suite for $40,000 cash. c. The company purchased office equipment for $5,400 cash. d. The company purchased $3,900 of office supplies and $1,400 of office equipment on credit. e. The company paid a local newspaper $990 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $4,200 for the service. g. The company designed a financial plan for another client and immediately collected a $8,100 cash fee. h. The company paid $1,300 cash in dividends to the owner (sole shareholder). i. The company received $3,200 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 $1,900 cash for the office secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 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 Liabilities Equity Cash Accounts Receivable Office Supplies Sun Office * Equipment + Office Suite = Accounts Payable Common Stock Dividends Revenues Expenses + + + + + + Bal. 0 + + + + + + Bal. + + + + + + + + Bal. + 0 + 0 = 0 + + + + + + + + Bal. + + + + + Bal. 0 + 0+ + + + + + 9.1 + + + Bal. h. + + + + Bal. + 0 = 0 + 0 + + + + + Bal. 0 0 + + 0 + + + + + Bal. + 0 + +1 + + Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the company's net income. Net income Problem 1-13AB Describing business activities LO C5 A start-up company often engages in the following transactions during its first year of operations. Classify those transactions in one of the three major categories of an organization's business activities. Business Activities Transactions 1. Selling and distributing products. 2. Purchasing a building. 3. Supervising workers. 4. Borrowing cash from a bank. 5. Paying employee wages. 6. Rent cost of office space. 7. Providing client services. 8. Purchasing land. Required information Use the following information for problem 3 to 5 LO P2 As of December 31, 2019, Armani Company's financial records show the following items and amounts. Cash Accounts receivable Supplies Equipment Accounts payable Common stock Retained earnings, Dec. 31, 2018 Retained earnings, Dec. 31, 2019 Dividends Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses $11,000 10,000 7,000 6,000 13,000 15,000 4,000 6,000 14,000 35,000 24,000 21,000 13,000 9,000 Problem 1-3A Preparing an income statement LO P2 Required: Prepare the 2019 year-end income statement for Armani Company. ARMANI COMPANY Income Statement For Year Ended December 31, 2019 requireu Tormation Required: Prepare the 2019 year-end income statement for Armani Company. ARMANI COMPANY Income Statement For Year Ended December 31, 2019 Revenues Total revenues Expenses Total expenses Required information Use the following information for problem 3 to 5 LO P2 As of December 31, 2019, Armani Company's financial records show the following items and amounts. Cash Accounts receivable Supplies Equipment Accounts payable Common stock Retained earnings, Dec. 31, 2018 Retained earnings, Dec. 31, 2019 Dividends Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses $11,000 10,000 7,000 6,000 13,000 15,000 4,000 6,000 14,000 35,000 24,000 21,000 13,000 9,000 Problem 1-4A Preparing a statement of retained earnings LO P2 Required: Prepare a year-end statement of retained earnings for Armani Company. Problem 1-4A Preparing a statement of retained earnings LO P2 Required: Prepare a year-end statement of retained earnings for Armani Company. ARMANI COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2018 Retained earnings, December 31, 2019 December 31, 2019 Required information Use the following information for problem 3 to 5 LO P2 As of December 31, 2019, Armani Company's financial records show the following items and amounts. Cash Accounts receivable Supplies Equipment Accounts payable Common stock Retained earnings, Dec. 31, 2018 Retained earnings, Dec. 31, 2019 Dividends Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses $11,000 10,000 7,000 6,000 13,000 15,000 4,000 6,000 14,000 35,000 24,000 21,000 13,000 9,000 Problem 1-5A Preparing a balance sheet LO P2 Required: Prepare a year-end balance sheet for Armani Company. ARMANI COMPANY Balance Sheet Required: Prepare a year-end balance sheet for Armani Company. ARMANI COMPANY Balance Sheet December 31, 2019 Liabilities Assets Total liabilities Equity Total equity Total liabilities and equity Total assets