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

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.