# Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a

Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a part-time assistant to answer the phone and handle third-story work. (Lisa is afraid of heights.) The transactions for the month of July are as follows:(a) On the first day of the month, Vozniak invested cash by making a deposit in a bank account for the business, \$8,000.(b) Paid rent for July, \$150.(c) Purchased a used van for cash, \$5,000.(d) Purchased tools on account from Clean Tools, \$600.(e) Purchased cleaning supplies that cost \$300. Paid \$200 cash and will pay the balance next month, \$100.(f) Paid part-time assistant (wages) for first half of month, \$100.(g) Paid for advertising, \$75.(h) Paid two-year premium for liability insurance on van, \$480.(i) Received cash from clients for services performed, \$800.(j) Performed cleaning services for clients on account, \$500.(k) Paid phone bill, \$40.(l) Received cash from clients for window cleaning performed on account in transaction (j), \$200.(m) Paid part-time assistant (wages) for last half of month, \$150.(n) Made partial payment on tools purchased in transaction (d), \$200.(o) Earned additional revenues amounting to \$800: \$600 in cash and \$200 on account.(p) Vozniak withdrew cash at the end of the month for personal expenses, \$100.Required:1. Enter the above transactions in an accounting equation similar to the one illustrated below.Assets =Liabilities+Owner’s Equity (Items Owned)(Amounts Owed)(Owner’s Investment)+(Earnings)Cash +Accounts Receivable+Supplies+Prepaid Insurance+Tools+Van=Accounts Payable+Lisa Vozniak, Capital – Lisa Vozniak, Drawing+Revenues-ExpensesDescription2.After transaction (p), compute the balance of each account.3.Prepare an income statement for We Do Windows for the month of July 20–.4.Prepare a statement of owner’s equity for We Do Windows for the month of July 20–.5.Prepare a balance sheet for We Do Windows as of July 31, 20–.