After completing his accounting degree, Scott Davis sets up his own tax consulting and preparation practice. At the end of the first month of operation, he had the following account balances:

Cash ....................................................$4,760

Accounts receivable ............................$2,800

Office Supplies ......................................$540

Office Equipment ...............................$8,400

Accounts Payable ................................$3,800

Common Stock .................................$11,000

Retained Earnings ...............................$1,700

At month end, the following transactions were completed:

A-Paid current month’s office rent of $700

B-Made payment towards Accounts Payable of $900

C-Billed clients for services performed of $1,600

D-Received payment from clients billed last month of $2,000

E-Purchased office supplies for cash of $160

F-Paid secretary's salary of $1,700

G-Paid utilities expense of $180

H-Paid telephone expenses of $100

I-Purchased additional office equipment for cash of $800

J-Received cash from clients for services performed of $2,400

K-Declared and paid dividends of $1,000

Required

1. Arrange the assets, liabilities and stockholder's equity accounts in the accounting equation format.

2. Enter the beginning balances of the assets, liabilities and stockholders' equity and show the addition or subtraction effects of the transactions on the accounting equation. Show the new balances after each transaction.

3. Sum the accounting equation at the bottom