1.Doris Stewart started her practice as a design consultant on September 1, 2012. During the first month of operations, the business completed the following transactions:

Received $42,000 cash and gave capital to Stewart.

Purchased supplies, $700, and furniture, $1,900, on account.

Performed services for a law firm and received $1,400 cash.

Paid $24,000 cash to acquire land for a future office site.

Performed service for a hotel and received its promise to pay the $1,000 within one week.

Paid for the furniture purchased September 4 on account.

Paid secretarys bi-monthly salary, $490.

Received cash on account, $400.

Prepared a design for a school on account, $700.

Received $2,100 cash for consulting with Plummer &Gorden.

Paid secretarys bi-monthly salary, $490.

Paid rent expense, $650.

Stewart withdrew cash of $3,000.

Required:

a) Prepare journal entries (7 points)

b) Prepare Income statement from the results of transactions (5 points)

c) Prepare Balance sheet (5 points)

2.Which operations should you add to operating and why? (2 points)

Please explain all steps detally.Explain to me how and with the help of which rule did you solve this exercise?Answer all questions.