Sarah Vandenberg has started a website business since her brother Todd has opened an successful garage called Toddies Gear Guys, and now Sarah wants to be an entrepreneur, too. Below are the events that Sarah experienced in May 2013 for her firm Sarah's Web Wonderland. Assume Sarah's business started with Accounts Payable of $\$ 1,350$ and $\$ 1,350$ in Supplies.

1. Analyze the transactions in terms of their effect on the accounting equation.
2. Develop an income statement and balance sheet for this new business.
3. Is this business doing well?

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May transactions a. Sarah received $15K as a gift from her brother to start the web business b. Performed website work for $950 C. Purchased a work truck (Kia Soul) for $12,250 credit with 2% down d. Purchased an annual truck insurance policy for $600 e. f. Paid $75 to advertise in the local Plain Dealer Purchased reference books for $1.99 from Amazon.com but paid $32 for expedited shipping. g. Paid rent of $2,200 and utilities of $160 Paid temporary help $1,700 for the month of May