Problem 01:

Ann Evans, CPA, completed the following transactions during August of this current year:

Aug. 1: Begin a public accounting practice by investing $2500 in cash.

Aug. 2: Purchased office supplies $75 from Sierra Company on credit.

Aug. 3: Paid three months rent in advance on suitable office space, $900.

Aug. 4: Hired an employee by $500 per month.

Aug. 5: Completed accounting work for a client and collected $ 60 cash there for.

Aug.11: Paid Sierra Co. of the amount owed for the items purchased on August 2.

Aug. 12: Paid the premium on insurance policy, $375.

Aug. 15: Completed accounting work for Nevada Co. on credit, $ 350.

Aug. 20: Ann Evans withdrew $100 from the business for personal expenses.

Aug. 23: Completed Accounting work for Donner co. on credit, $200.

Aug. 25: Received $ 350 from Nevada co. for the work completed on August 15.

Aug. 31: Paid the utility bills, $ 35.

Required:

Identify the transactions and events and give necessary explanation