Home work (1)

Yara decides to open a computer programming service, which

he names Softbyte. On May 1, 2015, the following Transactions
done during May 2015:

1. Yara Invested $50,000 cash to start the Softbyte.

2. Purchased equipment for $15,000 cash.
3. Paid $3,000 cash for May office rent.
4. Received $20,000 from customers for programming
service.
5. Withdrew $10,000 cash for personal use.
6. Paid employees’ salaries of $5,000.
7. Incurred $3,000 of advertising costs, on account.
8. Provided $5,000 of programming service on account.
9. Collected $2,000 cash for services previously billed.
10. Paid Common expenses of $4,000.
11. Paid $ 2000 of advertising costs previously bill.

Required:

1. Prepare a tabular analysis the effect of each

transactions above on the basic accounting equation.

2. Prepare Income Statement, Owner's Equity

Statement & balance sheet statement.