Tony Tiberio opens a law office under the name Tony Tiberio, Barrister & Solicitor, on July...

  

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Tony Tiberio opens a law office under the name Tony Tiberio, Barrister & Solicitor, on July 1, 20- On July 31, the balance sheet showed Cash $4 000; Accounts Receivable $1 500; Supplies $500; Office Equipment $5 000; Automobile $45 000; Accounts Payable $5 100; and T. Tiberio, Capital $50 900. During August, the following transactions occurred: August 4 7 12 15 17 23 Collected $1 200 of accounts receivable. Earned fees of $6 500, of which $3 000 was collected from clients and the remainder is on account. Purchased additional office equipment for $1 200, paying $400 in cash and leaving the balance on account. Sold one of the automobiles that originally cost $8 000 for $8 600. Made a $3 000 payment on account and deposited the rest. Supplies costing $300 were stolen by one of the employees and were never replaced. The owner withdrew $500 for personal use. 27 22 25 Took out a bank loan of $10 000 to purchase a new automobile for the business. Paid $60 to the Mississauga News for putting a small ad in the newspaper. 28 Made a $250 payment on account. 30 31 The law firm purchases an additional $350 worth of supplies from Staples, but does not receive the bill yet. The owner invests a new colour laser printer and toner into the business, each costing $800 and $250, respectively. Task: A. Set up the balance sheet items on a transaction analysis sheet. Note: There will be some blank columns and some new accounts that you would have to add. B. Analyze the August transactions and record the necessary changes on the transaction analysis sheet. C. After completing the transactions, calculate the new totals, ensure that the equation is still in balance, and prepare a new balance sheet. Tony Tiberio opens a law office under the name Tony Tiberio, Barrister & Solicitor, on July 1, 20- On July 31, the balance sheet showed Cash $4 000; Accounts Receivable $1 500; Supplies $500; Office Equipment $5 000; Automobile $45 000; Accounts Payable $5 100; and T. Tiberio, Capital $50 900. During August, the following transactions occurred: August 4 7 12 15 17 23 Collected $1 200 of accounts receivable. Earned fees of $6 500, of which $3 000 was collected from clients and the remainder is on account. Purchased additional office equipment for $1 200, paying $400 in cash and leaving the balance on account. Sold one of the automobiles that originally cost $8 000 for $8 600. Made a $3 000 payment on account and deposited the rest. Supplies costing $300 were stolen by one of the employees and were never replaced. The owner withdrew $500 for personal use. 27 22 25 Took out a bank loan of $10 000 to purchase a new automobile for the business. Paid $60 to the Mississauga News for putting a small ad in the newspaper. 28 Made a $250 payment on account. 30 31 The law firm purchases an additional $350 worth of supplies from Staples, but does not receive the bill yet. The owner invests a new colour laser printer and toner into the business, each costing $800 and $250, respectively. Task: A. Set up the balance sheet items on a transaction analysis sheet. Note: There will be some blank columns and some new accounts that you would have to add. B. Analyze the August transactions and record the necessary changes on the transaction analysis sheet. C. After completing the transactions, calculate the new totals, ensure that the equation is still in balance, and prepare a new balance sheet.