Question $2$

Lawrence Legal Eagles Company entered into the following transactions during March $2010.$

Purchased office equipment for $$21,500$ from Business Equipment, Inc. on account.

Paid $$4,000$ cash for March rent on office furniture.

Received $$15,000$ cash from customers for legal work billed in February.

Provided legal services to Amy Construction Company for $$3,000$ cash.

Paid Northern States Power Co$.$ $$11,000$ cash for electric usage in March.

Lawrence invested an additional $$32,000$ in the business.

Paid Business Equipment, Inc. for the office equipment purchased in $(1)$ above.

Incurred advertising expense for March of $$1,200$ on account.

Instructions

For each of the following, indicate whether the transaction increased $(+),$ decreased $(-),$ or had no effect $($NE$)$ on assets, liabilities, and equity using the following format.

Assets $=$ Liabilities $+$ Equity

SOLUTION: