Calculate total assets and total liabilities and equity

P1-46A

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 the law practice. Others were business transactions and should be accounted for by the business.

Requirement 1. Analyze the effects of the preceding events on the accounting equation of

Angela Petrillo, Attorney. Analyze the events chronologically, one transaction at a time. Beginning with the transaction on the 2nd, calculate the balance in each account after analyzing the effect of the transaction on the accounting equation. After calculating the ending balance of each account on the

31st, calculate total assets and total liabilities and equity.

(Complete only the necessary answer boxes for your transaction lines. [If a box is not used in the table leave the box empty; do not enter a zero for the transaction lines.] If a transaction is personal and does not affect the business, leave the transaction line blank. Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = AccountsPayable; A/R = Accounts Receivable; Com. = Common; Contr. Cap. = Contributed Capital; Div. = Dividends; Comp. = Computer; Exp. = Expense; Liab. = Liabilities; Misc. = Miscellaneous; Rev. = Revenue; Sup. = Supplies; Util. = Utilities.)

 ASSETS = LIAB. + EQUITY Contr. Cap. + Retained Earnings Cash + A/R + Office + Comp. = A/P + Com. - Div. + Service - Util. - Misc. Sup. Stock Rev. Exp. Exp. 3/1 + + + = + - + - - 3/2 + + + = + - + - - Bal. 0 + 0 + 0 + 0 = 0 + 0 - 0 + 0 - 0 - 0 3/3 72,000 + + + = + 72,000 - + - - Bal. 72,000 + 0 + 0 + 0 = 0 + 72,000 - 0 + 0 - 0 - 0
 3/5 (350) + + 350 + = + - + - - Bal. 71,650 + 0 + 350 + 0 = 0 + 72,000 - 0 + 0 - 0 - 0 3/7 + + + 5,500 = 5,500 + - + - - Bal. 71,650 + 0 + 350 + 5,500 = 5,500 + 72,000 - 0 + 0 - 0 - 0
 3/9 2,500 + + + = + - + 2,500 - - Bal. 74,150 + 0 + 350 + 5,500 = 5,500 + 72,000 - 0 + 2,500 - 0 - 0 3/15 + + + = 340 + - + - - 340 Bal. 74,150 + 0 + 350 + 5,500 = 5,840 + 72,000 - 0 + 2,500 - 0 - 340
 3/23 + 18,000 + + = + - + 18,000 - - Bal. 74,150 + 18,000 + 350 + 5,500 = 5,840 + 72,000 - 0 + 20,500 - 0 - 340 3/28 (340) + + + = (340) + - + - - Bal. 73,810 + 18,000 + 350 + 5,500 = 5,500 + 72,000 - 0 + 20,500 - 0 - 340
 3/30 (1,300) + + + = + - + - 1,300 - Bal. 72,510 + 18,000 + 350 + 5,500 = 5,500 + 72,000 - 0 + 20,500 - 1,300 - 340 3/31 1,800 + (1,800) + + = + - + - - Bal. 74,310 + 16,200 + 350 + 5,500 = 5,500 + 72,000 - 0 + 20,500 - 1,300 - 340
 3/31 (2,000) + + + = + - 2,000 + - - Bal. 72,310 + 16,200 + 350 + 5,500 = 5,500 + 72,000 - 2,000 + 20,500 - 1,300 - 340 Tot. \$94,360 = \$94,360

Requirement 2. Prepare the financial statements.

1. Income statement. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.)

Review the ending balances of the accounts from Requirement 1.

 Angela Petrillo, Attorney Income Statement Month Ended March 31, 2016 Revenues: Service Revenue \$20,500 Expenses: Miscellaneous Expense \$340 Utilities Expense 1,300 Total Expenses 1,640 Net Income \$18,860
1. Statement of retained earnings.

Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. (Enter a "0" for any zero balances. Use a minus sign or parentheses to show a decrease in retained earnings.)

Review the ending balances of the accounts from Requirement 1.

 Angela Petrillo, Attorney Statement of Retained Earnings Month Ended March 31, 2016 Retained Earnings, March 1, 2016 \$0 Net income for the month 18,860 18,860 Dividends (2,000) Retained Earnings, March 31, 2016 \$16,860
1. Balance sheet. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.)

Review the ending balances of the accounts from Requirement 1.

 Angela Petrillo, Attorney Balance Sheet Assets Liabilities Cash \$72,310 Accounts Payable \$5,500 Accounts Receivable 16,200 Stockholders' Equity Office Supplies 350 Common Stock 72,000 Computer 5,500 Retained earnings 16,860 Total Stockholders' Equity 88,860 Total Assets \$94,360 Total Liabilities and Stockholders' Equity \$94,360
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