Samson Zeleke recently opened his own accounting firm on April 1, which he operates as a corporation. The name of the new entity is Samson Zeleke , CPA. Samson experienced the
following events during the organizing phase of the new business and its first month of
operations in 2019:
Apr. 5 Shonton deposited Birr 75,000 in a new business bank account titled Samson Zeleke ,
CPA. The business issued common stock toSamson .
6 Paid Birr300 cash for letterhead stationery for new office.
7 Purchased office furniture for the office on account, Birr9,500.
10 Consulted with tax client and received Birr4,000 for services rendered.
11 Paid utilities, Birr190.
12 Finished tax hearings on behalf of a client and submitted a bill for accounting services,
Birr 20,000.
18 Paid office rent, Birr750.
25 Received amount due from client that was billed on April 12.
27 Paid full amount of accounts payable created on April 7.
30 Cash dividends of Birr 3,500 were paid to stockholders.
Requirements
1. Analyze the effects of the events on the accounting equation of Samson Zeleke, CPA. Use a
format similar to your chapter one handout format
2. Prepare the following financial statements:
a. Income statement.
b. Statement of retained earnings.
c. Balance sheet