Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a part-time assistant to answer the phone and handle third-story work. (Lisa is afraid of heights.) The transactions for the month of July are as follows:
(a) On the first day of the month, Vozniak invested cash by marketing a deposit in a bank account for the business, $8,000.
(b) Paid rent for July, $150.00
(c) Purchased a used van for cash, $5,000.
(d) Purchased tools on account from Clean Tools, $600.
(e) Purchased cleaning supplies that cost $300. Paid $200 cash and will pay the balance next month, $100.
(f) Paid part-time assistant (wages) for first half of month, $100.
(g) Paid for advertising, $75.
(h) Paid two-years premium for liability insurance on van, $480.
(i) Received cash from clients for services performed, $800.
(j) Performed cleaning services for client on account, $500.
(k) Paid phone bill, $40.
(l) Received cash from clients for window cleaning performed on account in transaction (j), $200.
(m) Paid part-time assistant (wages) for last half of month, $150.
(n) Made partial payment on tools purchased in transaction (d), $200.
(o) Earned additional revenue amounting to $800: $600 in cash and $200 on account.
(p) Vozniak withdrew cash at the end of the month for personal expenses, $100.
Required:
1. Enter the above transactions in an accounting equation similar to the one illustrated below:
Assets = Liabilities + Owner's Equity
(items Owned) (Amounts Owed) (Owner's Investment) + (Earnings)
Cash + Accounts Receivable +Supplies + Prepaid Ins. + Tools + Van = Account Payable +Lisa Vozniak Capital - Lisa Vozniak Drawing + Revenues - Expenses Description
2. After transaction (p), compute the balance of each account.
3. Prepare an income statement for We Do Windows for the month of July 2016.
4. Prepare a statement of owner's equity for We Do Windows for the month of July 2016.
5. Prepare a balance sheet for We Do Windows as of July 31, 2016.
Prepare all answers in and Excel Spreadsheet.