Canyon Canoe Company is a company that rents canoes for use on local lakes and rivers. Amber Wilson graduated from university about 10 years ago. She worked for a large accounting firm and became a CPA. Because she loves the outdoors, she decided to begin a new business that will combine her love of outdoor activities with her business knowledge. Amber decides that she will create a new sole proprietorship, Canyon Canoe Company. The business began operations on November 1, 2023.

Required

1. Analyze the effects of Canyon Canoe Company’s transactions on the accounting equation. Use the format of Exhibit 1–11, Panel B, and include these headings: Cash; Accounts Receivable; Office Supplies; Canoes; Accounts Payable; Amber Wilson, Capital; Amber Wilson, Withdrawals; Canoe Rental Revenue; Rent Expense; Salaries Expense; Utilities Expense; and Telephone Expense.

2. Prepare the income statement of Canyon Canoe Company for the month ended November 30, 2023. List expenses in this order: Rent Expense; Salaries Expense; Utilities Expense; and Telephone Expense.

3. Prepare the statement of owner’s equity for the month ended November 30, 2023.

4. Prepare the balance sheet as of November 30, 2023.

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Nov. 1 Amber Wilson invested $16,000 cash in the business by opening a bank account in the name of Canyon Canoe Company. The company leased a building and paid $1,200 for the first month's rent. The company purchased canoes for $4,800 on account. 2 3 4 7 13 15 16 20 22 26 28 30 The company purchased office supplies on account, $750. The company earned $1,400 cash for the rental of canoes. The company paid $1,500 cash for salaries. Amber Wilson withdrew $50 cash from the business for personal use. The company received a bill for $150 for utilities, which will be paid later. The company received a bill for $175 for cellphone expenses. The bill will be paid later. The company rented canoes to Early Start Daycare on account, $3,000. Canyon Canoe Company paid $1,000 of the amount owed for the November 3 purchase that was made on account. The company received $750 from Early Start Daycare as partial payment for the canoe rental on November 22. Amber Wilson withdrew $100 cash from the business for personal use.