Frank Petronick decided to start an accounting practice after graduation from college. The following is a list of events that occurred concerning Frank’s practice.
June 1: After shopping around, Frank found an office to lease and signed a lease agreement. The lease calls for a payment of $1051 rent per month.
June 4: Frank borrowed $3840 from his grandmother to assist in starting up his new business
June 4: deposits the $3840 plus $534 of his own cash in a new bank account at BMO under the name Petronick Accounting Services.
June 6: Paid the landlord the first month’s rent.
June 8: purchased furniture for $3290 on account
June 11: moved into the office and obtained the first assignment from a client to prepare year end financial statements for $1868
June 15: Performed the work on the assignment and sent an invoice to the customer for $1868
June 15: Paid half of the amount of the June 8 purchase of furniture
June 18: Purchased supplies on account for $339
June 26: paid for internet services, $53 cash
June 28: collected $903 of June 15 billing to the customer
June 30: withdrew cash from the business of $135 for personal expenses
A) prepare a tabular analysis of the effects of the above transactions on the accounting equation.
