Kerr Consulting began operations and completed the following transactions during December 2013.
Dec. 2 Received $30,000 cash from owner Alex Kerr. The business gave owner's equity in the business to Kerr.
2 Paid office rent for the month of December with cash, $3,000.
3 Paid cash for a Dell computer, $2,000. The computer is expected to remain in service for five years.
4 Purchased office furniture on account, $6,000. The furniture is expected to last for five years.
5 Purchased supplies on account, $500.
9 Performed consulting services for a client on account, $2,000.
12 Paid utility expenses with cash, $250.
18 Performed consulting services for a client and received cash of $2,000.
21 Received $2,000 in advance for client services to be performed evenly over the next 30 days.
22 Hired an office manager, on a part-time basis. She will be paid $2,000 per month. She started work immediately.
23 Paid $500 cash for the supplies purchased on December 5.
28 Collected $1,500 from the consulting client invoiced on December 9.
30 Alex Kerr withdrew $2,000 cash for personal use.
Required
Analyze the effects of Kerr Consulting's transactions on the accounting equation. Use the format of Exhibit, and use these headings: Cash; Accounts Receivable; Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; and Alex Kerr, Capital. In Chapter 2, we will account for these same transactions in a different way-as the accounting is actually performed in practice.