Reference no: EM132773157

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.

a. Lita Lopez invested $66,000 cash and office equipment valued at $36,000 in the company in exchange for its common stock.
b. The company purchased an office suite for $49,000 cash.
c. The company purchased office equipment for $5,500 cash.
d. The company purchased $3,500 of office supplies and $1,900 of office equipment on credit.
e. The company paid a local newspaper $980 cash for printing an announcement of the office's opening.
f. The company completed a financial plan for a client and billed that client $5,000 for the service.
g. The company designed a financial plan for another client and immediately collected a $9,000 cash fee.
h. The company paid $900 cash in dividends to the owner (sole shareholder).
i. The company received $4,000 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $950 cash on the equipment purchased in transaction d.
k. The company paid $1,900 cash for the office secretary's wages for this period.

Required:

Problem 1. Enter the amount of each transaction on individual items of the accounting equation.

Problem 2. Determine the company's net income