Chapter 1, Problem P1.52BPGB

Using the accounting equation for transaction analysis and preparing financial statements
Learning Objective 5
2c. Total Assets $58,360
Amos Sharp recently opened his own accounting firm on October 1, which he operates as a sole proprietorship. The name of the new entity is Amos Sharp, CPA. Sharp experienced the following events during the organizing phase of the new business and its first month of operations in 2018.

Oct. 5	Sharp deposited 545,000 in a new business bank account titled Amos Sharp, CPA. The business gave capital to Sharp.
6	Paid 5300 cash for letterhead stationery for new office.
7	Purchased office furniture for the office on account, $6,500.
10	Consulted with tax client and received $3,300 for services rendered.
11	Paid utilities, $340.
12	Finished tax hearings on behalf of a client and submitted a bill for accounting services, $16,000.
18	Paid office rent. $1,800.
25	Received amount due from client that was billed on October 12.
27	Paid full amount of Accounts Payable created on October 7.
31	Sharp withdrew cash of $3,800.

Requirements

1. Analyze the effects of the events on the accounting equation of Amos Sharp, CPA Use a format similar to Exhibit 1 -51.
2. Prepare the following financial statements:

a Income statement.
b. Statement of owner's equity.
c. Balance sheet.