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1) Analyze the effects of the events on the accounting equation of Amos Sharp, CPA. use of format similar to exhibit 1-5.

2) Prepare the following financial statements: a) Income Statement b) Statement of Owner's equity c) Balance Sheet

P1-52B Using the accounting equation for transaction analysis and preparing financial statements Amos Sharp recently opened his own accounting firm on October 1, which he operates as a sole proprietorship. The name of the new entity is Amos Sharp, CPA Sharp experienced the following events during the organizing phase of the new busi- ness and its first month of operations in 2018. Oct, 5 6 7 10 11 12 Sharp deposited $45,000 in a new business bank account titled Amos Sharp, CPA. The business gave capital to Sharp Paid $300 cash for letterhead stationery for new office. Purchased office furniture for the office on account, $6,500. Consulted with tax client and received $3,300 for services rendered. Paid utilities, $340. Finished tax hearings on behalf of a client and submitted a bill for accounting services, $16,000. 18 Paid office rent, $1,800. 25 Received amount due from client that was billed on October 12. 27 Paid full amount of Accounts Payable created on October 7 31 Sharp withdrew cash of $3,800. Requirements 1. Analyze the effects of the events on the accounting equation of Amos Sharp, CPA. Use a format similar to Exhibit 1-5. 2. Prepare the following financial statements: a. Income statement. b. Statement of owner's equity c. Balance shcet

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