Scribd
Upload
73 views1 page

Angela Petrillo's Law Office Transactions

Angela Petrillo recently opened her own law firm as a corporation called Angela Petrillo, Attorney. During the startup phase in March 2016, she deposited $31,000 from sold stock and $72,000 cash into business accounts. She received $2,500 in cash from clients and billed $18,000 to a client. The law firm paid various startup costs totaling $7,150 and utilities of $1,300 while receiving a magazine subscription bill of $340.

Uploaded by

hassan taimour
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
73 views1 page

Angela Petrillo's Law Office Transactions

Angela Petrillo recently opened her own law firm as a corporation called Angela Petrillo, Attorney. During the startup phase in March 2016, she deposited $31,000 from sold stock and $72,000 cash into business accounts. She received $2,500 in cash from clients and billed $18,000 to a client. The law firm paid various startup costs totaling $7,150 and utilities of $1,300 while receiving a magazine subscription bill of $340.

Uploaded by

hassan taimour
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Angela Petrillo recendy opened her own law office which

she #331
Angela Petrillo recendy opened her own law office, which she operates as a corporation. The
name of the new entity is Angela Petrillo, Attorney. Petrillo experienced the following events
during the organizing phase of the new business and its first month of operation, March 2016.
Some of the events were personal and did not affect the law practice. Others were business
transactions and should be accounted for by the [Link]. 1 Sold personal investment in
Amazon stock, which she had owned for several years, receiving $31,000 cash.2 Deposited the
$31,000 cash from the sale of the Amazon stock in her personal bank account.3 Deposited
$72,000 cash in a new business bank account titled Angela Petrillo, Attorney. The business
issued common stock to Petrillo.5 Paid $350 cash for ink cartridges for the printer.7 Purchased
computer for the law office, agreeing to pay the account, $5,500, within three months.9
Received $2,500 cash from customers for services rendered.15 Received bill from The Lawyer
for magazine subscription, $340.23 Finished court hearings on behalf of a client and submitted
a bill for legal services, $18,000, on account.28 Paid bill from The Lawyer.30 Paid utilities,
$1,300.31 Received $1,800 cash from clients billed on Mar. 23.31 Cash dividends of $2,000
were paid to [Link] 1. Analyze the effects of the preceding events on the
accounting equation of Angela Petrillo, Attorney. Use a format similar to Exhibit 1 -6.2. Prepare
the following financial statements:a. Income statement.b. Statement of retained earnings.c.
Balance sheet. View Solution:
Angela Petrillo recendy opened her own law office which she

ANSWER
[Link]
she/

1/1
Powered by TCPDF ([Link])

You might also like