Reference no: EM132986437

Joanne Cardinal started a hair cutting business called The Cutlery. The following business activities occurred during its first month August 2021-

1. On Aug 1, cardinal put $16,000 cash into the business. She also invested $10,000 of equipment in the business.
2. on Aug 2, she paid $2000 cash for furniture for the shop
3. on August 3, she paid $3200 cash to rent space in a strip mall for August
4. on August 4, she bought equipment on credit for $21,000. This amount is to be repaid in three equal payments at the end of August, September and October
5. on August 5, receipts from services provided for cash were $1100
6. on August 15, business provided haircutting services on account for $750
7. On Aug 17, business received a check of $750 in the mail for services previously rendered on account
8. on Aug 17 business paid wages of $250 to an assistant for working during the grand opening
9. on Aug 18, business interviewed a job applicant who was successful in getting the position and will receive $750 per week for part time work starting in September
10. cash receipts from services provided during the second half of August was $1950
11. on August 31st business paid in installment on the account payable created in (d)
12. on August 31st the hydro bill of $450 worth was received and will be paid on September 14
13. on Aug 31, cardinal withdrew $500 cash for her personal use

Problem 1: Prepare a statement of accounting equation using assets is equal to liabilities plus equity.