Allen Shonton recently opened his own accounting firm on April 1, which he operates as a sole proprietorship. The name of the new entity is Allen Shonton, CPA. Shonton experienced the following events during the organizing phase of the new business and its first month of operations in 2024:

Requirements
1. Analyze the effects of the events on the accounting equation of Allen Shonton, CPA. Use a format similar to Exhibit F:1-5. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture; Accounts Payable; Shonton, Capital; Shonton, Withdrawals; Service Revenue; Rent Expense; and Utilities Expense.
2. Prepare the following financial statements:
a. Income statement for the month ended April 30, 2024.
b. Statement of owner’s equity for the month ended April 30, 2024.
c. Balance sheet as of April 30, 2024.

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Apr. 5 6 7 10 11 12 Shonton deposited $75,000 in a new business bank account titled Allen Shonton, CPA. The business gave capital to Shonton. 18 25 27 Paid $300 cash for letterhead stationery for new office. Purchased office furniture for the office on account, $9,500. Consulted with tax client and received $4,000 for services rendered. Paid utilities, $190. Finished tax hearings on behalf of a client and submitted a bill for accounting services, $20,000. Paid office rent, $750. Received amount due from client that was billed on April 12. Paid full amount of accounts payable created on April 7. 30 Shonton withdrew cash of $3,500.