Chapter 1, Problem P1.46APGA

To determine

Introduction:

Transaction Analysis: An accounting process to analyse each and every transaction that impacts business is known as transaction analysis. The analysis is done using the double entry system that impacts at least two accounts for each transaction and basic accounting equation that represents total assets of the business equals with the total liabilities and owner’s equity of the business should be followed.

Financial Statement: The statement or record of financial activities of the business or a company in a structured and simple manner in the form of report for a period refers to the financial statement. The financial statement is essential for the business because it is the key indicator of financial results of the business that reports the true and fair position of the business. There are four basic financial statements that includes:

a. Income Statement

b. Statement of Owner’s Equity

c. Balance Sheet

d. Cash Flow Statement

Requirement-1:

To analyse:

The effects of the transactions on the accounting equation of Angela Petrillo Attorney taken place during the month of March 2016.

To determine

Requirement-2a:

To prepare:

The income statement of Angela Petrillo Attorney for the month ended March 31st, 2016 to determine the net income of the company.

To determine

Requirement-2b:

To prepare:

The statement of Owner’s Equity of Angela Petrillo Attorney for the month ended March 31st, 2016 to determine the Owner’s Capital at the end of the year.

To determine

Requirement-2c:

To prepare:

The balance sheet of Angela Petrillo Attorney for the month ended March 31^st, 2016 to determine the financial position of the company.