Danielle McLynn Started a Consulting Business, McLynn Consulting, on January

question 47

Essay

Danielle McLynn started a consulting business, McLynn Consulting, on January 1, 2013, and the business engaged in the following transactions during the year:
1. Issued $8,000 of common stock for cash
2. Provided services on account, $26,500
3. Incurred $17,500 of operating expense, but only paid $12,000 of this amount
4. Collected $19,000 of the revenue that was previously recorded on account
5. Paid a cash dividend of $4,500 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 2013.

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Definitions:

Speech and Language

Domains involving the vocal production of sounds (speech) and the rules for combining those sounds into meaningful communication (language).

Lack of Emotion

Refers to diminished emotional responsiveness or affect, often observed in various psychological conditions.

Delusion of Grandeur

A false belief in one's own superiority, entitlement, or grandiose abilities, often found in psychiatric conditions like bipolar disorder or schizophrenia.