Maggie Stern Started a Consulting Business, Stern Consulting, on January

question 119

Essay

Maggie Stern started a consulting business, Stern Consulting, on January 1, Year 1. The following events occurred in Year 1:
1)Acquired $9,000 cash by issuing common stock2)Provided services on account, $27,5003)Paid cash for $13,500 in operating expenses4)Collected $11,000 of the revenue that was previously recorded on account5)Paid a cash dividend of $5,000 to the stockholders
Required: a)Show the effects of the above transactions on the accounting equation.
b)Prepare an income statement and statement of cash flows for Year 1.

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Definitions:

Glazed Expression

A look on someone's face that shows lack of interest or understanding, often appearing unfocused or distant.

Variety Of Media

The range of different methods or channels through which content can be delivered or communicated, including print, online, broadcast, and social platforms.

Appreciating Diversity

Recognizing and valuing the differences among people, such as culture, race, gender, or beliefs, and understanding that these differences contribute to a richer, more varied experience.

Soft Skill

Personal attributes and interpersonal skills that enhance an individual's interactions, job performance, and career prospects.