Question : Using the accounting equation for transaction analysis and preparing financial : 6346
Using the accounting equation for transaction analysis and preparing financial statements Angela Petrillo recently opened her own law office, which she operates as a corporation. The name of the new entity is Angela Petrillo. Attorney. Petrillo experienced the following events during the organizing phase of the new' business and its first month of operation. March 2016. Some of the events were personal and did not affect die law practice. Others were business transactions and should be accounted for by the business. Mar. 1 Sold personal investment in Amazon stock, which she had owned for several years, receiving S31,000 cash. Deposited the S31,000 cash from the sale of the Amazon stock in her personal bank account. Deposited S72.000 cash in a new business bank account titled Angela Petrillo, Attorney. The business issued common stock to Petrillo. Paid S350 cash for ink cartridges for the printer. Purchased computer for the law office, agreeing to pay the account, S5.500, within three months. Received S2.500 cash from customers for services rendered. Received bill from The Lawyer for magazine subscription, $340. (Use Miscellaneous Expense account) Finished court hearings on behalf of a client and submitted a bill for legal services, $18,000, on account. Paid bill from The Lawyer. Paid utilities, $1, 300 Received $1, 800 on cash from clients billed on Mar. 23. Cash dividends of $2,000 were paid to stockholders. Requirements Analyze the effects of the preceding events on the accounting equation of Angela Petrillo, Attorney. Use a format similar to Exhibit 1-6. Prepare the following financial statements: Income statement. Statement of retained earning Balance sheet.