Using the spreadsheet method $($demonstrated in your textbook on pages $60-70$ and in a Module

$2$ demonstration video$)$ and the template provided, analyze the effects of each transaction above. Be sure

to mark the appropriate cells for all accounts impacted by each transaction, whether they increase or

decrease, and show that the accounting equation is in balance. Decreases should be input as negative

numbers. Also indicate the cash flow category if applicable. The first transaction is given as an example.

No additional accounts$/$columns should be added to this template, and no additional entries are needed.

Ignore income taxes.

Keep in mind that all transactions involving revenues and expenses will also impact Retained Earnings. Be

sure to indicate this effect on the template. Remember that Assets $=$ Liabilities $+$ Equity for all

transactions, regardless of whether they impact revenue and expense accounts. Color is used on the

template to help highlight these relationships.

Prepare an Income Statement$*$ for Mayer CPAs for the month ended August $31,2023.$ The general

format is provided on the second tab of the template. $(20$ points$)$

$3.$ Prepare a Statement of Stockholders$$ Equity$*$ for Mayer CPAs for the month ended August $31,2023,$

also using the general format provided on the template. $(15$ points$)$ Keep in mind that the beginning

balances on this statement should be zero since this is a newly formed entity.

$4.$ Prepare a Classified Balance Sheet$*$ for Mayer CPAs at August $31,2023,$ also using the general format

provided on the template. $(20$ points$)$

$*$ Be sure to include appropriate details in your financial statements. Use dollar signs and underlining only

where appropriate. Refer to the examples presented in your textbook, notes, and$/$or demonstration videos, and

do not include any line items that are not applicable to Mayer CPAs. The yellow highlighted cells should be

populated, and no additional line items are necessary.

As always, you may wish to do this type of work manually $$ with pencil, paper, and calculator. However, your

completed project must be submitted using the Excel template provided.

Your completed project is to be submitted via Canvas upload. Both tabs within the Excel template should be

completed $($one for the transaction analysis $($step $1)$ and the other for the financial statements $($steps $2-4)).$

Be sure to check$**$ your work. Deductions will be applied for any submission that is not complete or not

presented in accordance with the instructions.

$3$

Check Figures$**$:

Mayer$$s end of the month Cash balance $=$ $$15,350$;

Net Income $=$ $$6,920$;

Total Stockholders$$ Equity $=$ $$21,720$;

Total Assets $=$ $$28,910.$

$**$Please do not submit this assignment if your answers do not agree with the check figures or if your Balance

Sheet is out of balance. Also be sure that:

$>$ Net Income articulates from the Income Statement to the Statement of Stockholders$$ Equity, and

$>$ Ending equity balances articulate from the Statement of Stockholders$$ Equity to the Balance Sheet.

$**$Allow yourself ample time to check your work and make corrections if needed. Reach out to your professor

if you need help. You are permitted to work with a classmate on this assignment; however, each student must

prepare their own submissions. Accordingly, template entries are not to be shared or copied. Please note that

submissions will be reviewed for originality

On August $1,2023,$ Lia Mayer and her brother started their own accounting firm, Mayer CPAs, Inc. in

Norwood, Ohio. The following business transactions occurred during the first month:

Aug. $2$: Issued $1,000$ shares of stock in exchange for $$15,000$ received from stockholders.

Aug. $3$: Paid $$500$ for rent for office space for the month of August.

Aug. $4$: Purchased office equipment for $$4,000,$ paying half in cash and the other half on account.

Aug. $7$: Paid $$150$ to run advertisements in this week's Xavier Newswire and Cincinnati Enquirer.

Aug. $10$: Received $$2,400$ for accounting services performed on this date.

Aug. $11$: Performed $$10,200$ of accounting services on account.

Aug. $14$: Borrowed $$5,000$ from $\frac{5}{3}$ Bank under the terms of a $36-$month note. All principal and

interest will be paid on the maturity date.

Aug. $15$: Paid $$2,400$ for employee salaries.

Aug. $16$: Purchased and received $$600$ of supplies on account. The supplies were not yet used in August.

Aug. $18$: Collected $$1,200$ from clients for the services performed on August ${11}^{th}.$

Aug. $25$: Paid a $$200$ dividend.

Aug. $28$: Paid for the supplies that were purchased on August ${16}^{th}.$

Aug. $31$: Paid $$2,400$ for emp