This exercise is an extension of Exercise 2-3A. Assume Alice Stern completed the following additional transactions during February. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owner’s Equity (Capital – Drawing + Revenues – Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance.
(e) Received cash from a client for professional services, $2,500.
(f) Paid office rent for February, $900.
(g) Paid February telephone bill, $73.
(h) Withdrew cash for personal use, $500.
(i) Performed services for clients on account, $1,000.
(j) Paid wages to part-time employee, $600.
(k) Received cash for services performed on account in transaction (i), $600.