Sara-Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business
Sara-Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business follow.
1. Analyze the transactions for January 20X1. Record each in the appropriate T accounts. Identify each entry in the T account by writing the letter of the transaction next to the entry.
2. Determine the account balances. Prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet for Sara-Jayne Parsons, Architect.
Sara-Jayne Parsons, Capital
Sara-Jayne Parsons, Drawing
Using the basic accounting equation, what is the financial condition of Sara-Jayne Parsons’s business at the end of the month?
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