P1-32A Angela Peters practiced law with a partnership for 10 years. Recently she opened her own law office,

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P1-32A Applying the entity concept, using the accounting equation
for transaction analysis, preparing financial statements, and evaluating
business performance [20–30 min]

Angela Peters practiced law with a partnership for 10 years. Recently she opened her
own law office, which she operates as a professional corporation. The name of the
new entity is Angela Peters, Attorney, P.C. Peters experienced the following events
during the organizing phase of the new business and its first month of operation.
Some of the events were personal and did not affect the law practice. Others were
business transactions and should be accounted for by the business.

1-Mar Sold personal investment in eBay stock, which she had owned for several years, receiving $31,000 cash.
2 Deposited the $31,000 cash from sales of the eBay stock in her personal bank account.
3 Received $139,000 cash from former law partners.
5 Deposited $89,000 cash in a new business bank account titled Angela Peters, Attorney, P.C. The
business issued common stock to Peters.
7 Paid $400 cash for ink cartridges for the printer.
9 Purchased computer for the law office, agreeing to pay the account, $9,300, within three months.
23 Finished court hearings on behalf of a client and submitted a bill for legal services, $13,500, on account.
30 Paid utilities, $1,200.
31 Paid cash dividends of $2,000.

Requirements
1. Analyze the effects of the preceding events on the accounting equation of the
corporation of Angela Peters, Attorney, P.C. Use a format similar to Exhibit 1-6.
2. At March 31, compute the business’s
a. total assets. c. total stockholders’ equity.
b. total liabilities. d. net income or net loss for the month.
3. Evaluate Angela Peters, Attorney, P.C.’s first month of operations. Were the
results good or bad?