Comprehensive Example:

Marilyn Mansion owns and operates a public relations firm called Goth, Inc. The
following amounts summarize her business on August 31, 2016:

During September 2016, the business completed these transactions:

a. On 1/9/2016, issued common stock and received cash of $ 10,000.

b. On 3/9/2016, performed services for a client and received cash of $ 1,100.
c. On 7/9/2016, paid off the beginning balance of accounts payable.
d. On 11/9/2016, purchased supplies on account, $ 700.
e. On 14/9/2016, collected cash from a client on account, $600.
f. On 17/9/2016, received cash of $ 1,700 from HSBC bank for loan previously
requested.
g. On 20/9/2016, consulted for a new band and billed the client for services
rendered, $ 4,300.
h. On 26/9/2016, returned supplies to Office Max for $ 100, which was the cost of the
supplies.
i. On 30/9/2016 1. Paid office rent, $ 1,000.
2. Paid advertising, $ 300.
j. On 30/9/2016, paid cash dividends of $ 2,200.

Requirements:
1. Analyze the effects of the preceding transactions on the accounting equation of Goth.
2. Prepare the income statement of Goth for the month ended September 30, 2016.
3. Prepare the entities statement of retained earnings for the month ended September
30, 2016.
4. Prepare the balance sheet at September 30, 2016.