Lucius Fox Opens a Sports Consulting Office on July 1

Essay

Lucius Fox opens a sports consulting office on July 1, 2020. During the first month of operations, the following transactions occurred.
1. Lucius invested $15,000 in cash in the business.
2. Paid $900 for July rent on office space.
3. Purchased equipment on account $4,000.
4. Performed consulting services to clients for cash $3,500.
5. Paid $1,000 toward equipment purchased in #3.
6. Performed consulting services for client for cash $5,000.
7. Paid monthly expenses: salaries and wages $700, utilities $400, and advertising $200.
8. Lucius withdrew $1,800 cash for personal use.
Prepare a tabular analysis, which shows the effects of these transactions on the expanded accounting equation, with owner's equity columns for Capital, Drawings, Revenues, and Expenses