Module 1 Practice_ Accounting Equation_Financial Statements Jane Doe opened Creative Marketing on August 1. The following amounts summarize the transactions and financial position of Creative Marketing as of August 31. During August the following transactions occurred: 1-Aug Jane purchased $25,000 of stock in the company. 2-Aug Jane purchased $6,500 of equipment for the company with cash. 7-Aug Jane purchased supplies for $2,200 on account. 15-Aug Jane put out some press releases for a client and received $2,000 cash as payment in full at the time of service. 17-Aug Jane sent an invoice to a customer for design work provided. The work performed cost $4,000. 20-Aug Jane paid $1,500 of her accounts payable balance as of August 20th. 24-Aug Jane collected partial payment of $800 from the customer for the job performed and billed on August 17th. 25-Aug Jane sold $10,000 of company stock to her friend. 28-Aug Jane paid wages to her workers of $1,500. 30-Aug Jane paid office rent of $900 30-Aug Jane paid dividends to herself of $500 Requirements: 1 Use the date line to enter the transactions for August into the accounting equation. The spreadsheet will automatically calculate the new balances after each entry. Assets = Liabilities + Stockholders' Equity Cash + Accounts Receivable + Supplies + Equipment Accounts Payable Common Stock + Service Revenue - Wages Expense - Office Rent Expense 1-Aug + + + = + $25,000.00 + - - 2-Aug + + + = + $25,000.00 + - - 7-Aug + + + = + $25,000.00 + - - 15-Aug + + + = + $25,000.00 + - - 17-Aug + + + = + $25,000.00 + - - 20-Aug + + + = + $25,000.00 + - - 24-Aug + + + = + $25,000.00 + - - 25-Aug + + + = + $25,000.00 + - - 28-Aug + + + = + $25,000.00 + - - 30-Aug + + + = + $25,000.00 + - - 30-Aug Bal. + + + = + $25,000.00 + - - 2 Prepare the Income Statement for the month of August for Creative Marketing by completing the gray cells using information from the spreadsheet above or calculating values as appropriate. Creative Marketing Income Statement For the Month Ended August 31, 20XX Revenues: Service Revenue Expenses: Wages Expense Office Rent Expense Total Expenses Net Income 3 Prepare the Statement of Retained Earnings for Creative Marketing for the Month of August by completing the gray cells using information from the spreadsheet above or calculating values as appropriate. Creative Marketing Statement of Retained Earnings For the Month Ended August 31, 20XX Retained Earnings, August 1 Net Income Less Dividends Increase in Retained Earnings Retained Earnings, August 31 4 Prepare the Balance Sheet for Creative Marketing as of August 31 by completing the gray cells using information from the spreadsheet above or calculating values as appropriate. Creative Marketing Balance Sheet August 31, 20XX ASSETS LIABILITIES Cash Accounts Payable Accounts Receivable Total Liabilities Supplies Equipment STOCKHOLDERS' EQUITY Common Stock Retained Earnings Total Stockholders' Equity Total Assets Total Liabilities Stockholders' Equity