Phillip Recently Started a Business

question 56

Essay

Phillip recently started a business. Phillip's Photography will provide photography for weddings and special events. Listed below are the second month's transactions.

Required
(a) Set up the table to reflect the accounts and set up the headings in the order of the accounting equation.
(b) Record each transaction on the table.
(c) What are the total assets for March 2013?
(d) What are the total liabilities for March 2013?
(e) What is the net profit or net loss for March 2013?
(f) Prepare the income statement for Phillip's Photography.
(g) Demonstrate that the accounting equation is in balance.

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