1. Patrick Wright started his own Consulting Business on January 1, 2023, which he named P. Wright Consultants.

(a) January 1, 2023 - Patrick started the business by investing $ 45,000 cash and computer equipment worth $ 15,000.

(b) January 1, 2023 P. Wright Consultants paid $ 12,000 for a years worth of insurance in advance for its employees.

(c) January 5, 2023 P. Wright Consultants performed $ 40,000 of consulting services for Marigold Farms. Marigold agreed to pay P. Wright Consultants on February 15, 2023.

(d) January 9, 2023 P. Wright Consultants paid $ 10,000 for supplies.

(e) January 15, 2023 Received $ 8,000 cash from Marigold Farms for the work performed on January 5, 2023.

(f) January 20, 2023 Patrick withdrew $ 3,000 to pay for his daughters tuition.

(g) January 31, 2023 P. Wright Consultants paid rent of $ 1,700 for the month.

(h) January 31, 2023 P. Wright Consultants pays its employees salaries of $ 10,000 on Fridays for a five day work week. January 31, 2023 fell on a Tuesday.

Prepare the accounting equation for the transactions listed above.

2. Prepare the Income Statement for P. Wright consultants at the end of January.

3. Prepare the journal entry for 1 (a).

4. Prepare the journal entry for 1 (b).

5. Prepare the journal entry for 1 (c).

6. Prepare the journal entry for 1 (d).

7. Prepare the Journal entry for 1 (g) and post it to the appropriate ledger account (create your own account numbers).

8. Prepare the adjusting journal entry for 1 (b).

9. Prepare the adjusting journal entry for 1 (h).

10. What is the definition of liabilities?