You open a consulting business on January $1$st and must account for the following transactions during a one month period:

Day $1$: You contribute $$10,000$ of your own money to the business for initial expenses.

Day $1$: Hire an administrative assistant who will work Monday $-$ Friday; pay: $$500/$week; pay$-$day: every $2$ weeks. He begins on day $1.$

Day $2$: Take care of normal business start$-$up issues:

Rent Office Space: You pay $$6,000$ in advance for the entire first year's rent and $$500$ as a security deposit.

Buy Insurance: you pay $$600$ for $6$ months coverage

Buy Office Supplies: you pay $$100$

Rent Office Equipment and Furniture: you pay $$750$ for a $3-$month lease

Day $4$: You staff a table at a Career Fair and secure $20$ clients during the day; you charge $$100/$client for the advice you provide but offer a $10\%$ discount for cash; half pay you cash, the other half promise to pay at the end of the month $($Career Fair lasts one day$)$

Day $12$: You receive a $$500$ fee for making a luncheon presentation at the local Kiwanis Club.

Day $14$: Payday for your administrative assistant for two weeks of work.

Day $17$: Pay contracting consultant $$1000$ to create training program. Delivery date for program materials is February $15$th$.$

Day $25$ : You sign a consulting contract that will begin February $1$st and pay you $$1,000$ per month for the remainder of the year.

Day $27$: Meet with attorney to discuss copyright options for training program the contracting consultant will create. Pay the attorney $$500($$$250$ per hour$)$ to cover the cost of the meeting.

Day $29$: Payday for your administrative assistant for two weeks of work.

Day $30$: You secure a loan of $$50,000$ from your favorite bank and receive the money that day.

Determine:

Step $1$ Use the Worksheet$\_$Lesson$3.$docx document to list the following types of entries that would be made to an income statement:

Revenue

Direct Costs

Indirect Costs

Step $2$ Identify how the appropriate category would be affected by each transaction $($i$.$e$.,$ increased or decreased$),$ and the dollar amount of the transaction $($e$.$g$.,+$$$250,$ or $-$$$400).($Provide whatever comment you believe necessary to explain your decisions.

Step $3-$ Based upon the above transactions, assemble an income statement to determine net profit or net loss using the Accrual Method of Accounting.