Question
The following events concern Anita White, a Manitoba law school graduate, for March 2021: 1. On March 4, she spent $20 on a lottery ticket.
The following events concern Anita White, a Manitoba law school graduate, for March 2021:
1. | On March 4, she spent $20 on a lottery ticket. | |
2. | On March 7, she won $280,000 in the lottery and immediately quit her job as a junior lawyer. | |
3. | On March 10, she decided to open her own law practice, and deposited $45,000 of her winnings in a business chequing account, White Legal Services. | |
4. | On March 14, she purchased a new luxury condominium with a down payment of $150,000 from her personal funds plus a home mortgage of $240,000. | |
5. | On March 15, Anita signed a rental agreement for her law office space for $2,500 a month, starting March 15. She paid the first months rent, as it is due on the 15th of each month. | |
6. | On March 19, she hired a receptionist. He will be paid $750 a week and will begin working on March 24. | |
7. | On March 20, she purchased equipment for her law practice from a company that had just declared bankruptcy. The equipment was worth at least $15,000 but Anita was able to buy it for only $8,500. | |
8. | On March 21, she purchased $225 of supplies on account. | |
9. | On March 24, she purchased an additional $5,500 of equipment for her law practice for $2,000 plus a $3,500 note payable due in six months. | |
10. | On March 31, she performed $4,300 of legal services on account. | |
11. | On March 31, she received $2,500 cash for legal services to be provided in April. | |
12. | On March 31, she paid her receptionist $750 for the week. | |
13. | On March 31, she paid $225 for the supplies purchased on account on March 21. |
Prepare a tabular analysis of the effect of the above transactions
b) calulate profit and owners equity
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