Reference no: EM132545563

Record transactions

Ron Smith opens an apartment - Locator business near a college campus. The Company will be named Campus Apartment Locators. Duringthe first month of operations, July 2018, the business completes the following transactions:

a. Smith Contributes $35,000 to the business. The business gives capital to smith.

b. Purchases $350 of office supplies on account..

c. Pays cash of $30,000 to acquire a lot next to campus.

d. Locates apartments for clients and receives cash of $1,900.

e. Pays $100 on the accounts payable the business created in Transaction (b).

f. Pays cash expenses for office rent, $400, and utilities $100.g.Smith withdrew cash of $1,200.

Requirement

Question 1: Analyze the preceding transactions in terms of their effects on the accounting equation of Campus Apartment locators.

Question 2: Prepare the income statement, statement of owner's equity, balance sheet. Name the three financial statements. Provide a short description of the role that each statement plays in providing information.

Question 3: Prepare Financial statement.