Recording transactions and preparing a trial balance P1-42 Carl Redmon completed these transactions during the first half of December Dec. 2 Invested $10,000 to start a consulting practice titled Redmon Consulting 2 Paid monthly office rent, $500 3 Paid cash for a Dell computer, $2,000. This equipment is expected to remain in service for five years. Purchased offce furniture on account, $3,600. The furniture should last for five years. Purchased supplies on account, $300. Performed consulting service for a client on account, $1,700. Paid utility expenses, $200 Performed service for a client and received cash of $800. 4 5 9 12 18 Requirements 1. Analyze the effects of Redmon's transactions on the accounting equa tion. Use the format of Exhibit 1-7, page 18, and include these head- ings: Cash, Accounts Receivable, Supplies, Equipment, Furniture, Accounts Payable, and Carl Redmon, Capital. 2. Prepare the income statement of Redmon Consulting for the month ended December 31, 2007. List expenses in decreasing order by amount. (p. 20) 3. Prepare the statement of owner's equity for the month ended 4. Prepare the balance sheet at December 31,2007. (p. 20) In Chapter 2, we will account for these same transactions a different December 31,2007. (p. 20) way-as the accounting is actually performed in practice