Using your answer to Problem 1-7A, prepare an income statement, a statement of changes in equity, and a balance sheet.
In problem 1-7

During November, the following occurred:
Nov 1 Rented office space and paid cash for the month's rent of $7,200.
3 Purchased electrical equipment for $18,000 from an electrician who was going out of business, by using $10,000 in personal funds and agreeing to pay the balance in 30 days.
5 Purchased office supplies by paying $1,800 cash.
Nov. 6Completed electrical work and immediately collected $2,000 for doing the work.
8 Purchased $5,200 of office equipment on credit.
15 Completed electrical work on credit in the amount of $6,000.
16 Interviewed and hired a part-time electrician who will be paid $5,300 each month. He will begin work in three weeks.
18 Purchased $1,000 of office supplies on credit.
20 Paid for the office equipment purchased on November 8.
24 Billed a client $4,800 for electrical work; the balance is due in 30 days.
28 Received $6,000 for the work completed on November 15.
30 Paid the office assistant's salary of $4,400.
30 Paid the monthly utility bills of $3,600.
30 Power withdrew $1,400 from the business for personal use.
Analysis Component: Assets are financed by debt and equity. Net income is a component of equity. Therefore, net income helps to finance assets. Explain how/if net income helped to finance assets for Power Electrical for the month ended November 30, 2014.

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Assets Liabilities+ Equity Accounts Office Office Electrical Accounts Larry Power, Cash Receivable Supplies Equip. +Equip. Payable Capital $30,000 + $7,000 + $1,900 +$28,000 + $14,000 $18,000 + $62,900