Problem
John started her own company, John Consulting, on July 1, 2020. The following transactions happened during the month of July:
July 1 Sold his shares in Picul Airlines for $8,000, which he deposited in his personal bank account. 1 Transferred $7,000 from his personal account to a business account in the name of John Consulting.
July 2 Paid $850 for office rent for the month.
3 Purchased $535 of supplies on account.
5 Paid $85 to advertise in the Vanguard News.
9 Received $3,475 for services provided.
12 Withdrew $650 for personal use.
15 Performed $5,500 of services on account.
17 Paid $1,700 for employee salaries.
21 Received $3,500 for services provided on account on July 15.
22 Paid for the supplies purchased on account on July 3.
25 Signed a contract to provide consulting services to a client for $5,000. Services will be performed and paid for in July.
26 Borrowed $5,000 from the bank and signed a note payable.
29 Used part of the cash borrowed from the bank on July 26 to purchase equipment for $2,250.
30 Paid $180 for telephone service for the month.
30 Received $2,600 from client for consulting to be provided in July.
Task
1. How can I Prepare a tabular analysis of the effects of the above transactions on the accounting equation.
2. Calculate profit and owner's equity for the month ended June 30.
3. Prepare a balance sheet at June 30.