Biando Corporation began operations on May 1, 2018, and completed the following transactions during its first month of operations.
A. Sold capital stock for $30,000.
B. Purchased land and a building valued at $35,000 and $165,000, respectively, by paying $10,000 cash and signing a 20-year mortgage for the balance.
C. Purchased office equipment on account, $7,500.
D. Billed a customer for services performed, $5,000.E. Received an $800 deposit from a customer for services to be performed next month.
F. Made a partial payment on account for the office equipment purchased in transaction (C), $1,500.
G. Performed a service and immediately collected $2,000.
H. Received and immediately paid the telephone bill for the month, $380.
I. Paid a dividend to owners, $3,000.
J. Received, but did not pay, the monthly utility bill, $450.

Required:

1. Determine the effect of each of the preceding events on the accounting equation.
2. Prepare the general journal entries to record each of these events. Note: You may want to set up Taccounts to keep track of some accounts. Do not prepare adjusting entries.
3. Prepare the income statement for the period.
4. Prepare the statement of retained earnings for the period.
5. Prepare the statement of cash flows for the period.
6. Prepare the balance sheet at the end of the period.
7. Prepare the closing entries.