Grant Appraisal Service provides commercial and industrial appraisals and feasibility studies. On January 1, the assets and liabilities of the business were the following:Cash $10,700Accounts Receivable 15,800Accounts Payable 600Notes Payable 3,500Common Stock 18,400Retained Earnings 4,000The following transactions occurred during the month of January:Jan:
1 Paid rent for January, $950.2 Received $8,800 payment on customers' accounts.3 Paid $750 on accounts payable.4 Received $1,700 for services performed for cash customers.5 Borrowed $5,000 from a bank and signed a note payable for that amount.6 Billed the city $6,200 for a feasibility study performed; billed various other credit customers, $1,900.7 Paid the salary of an assistant, $3,500.8 Received invoice for January utilities, $410.9 Paid $6,000 cash for employee salaries.10 Purchased a van (on January 31) for business use, $8,800.11 Paid $150 to bank as January interest on the outstanding note payable. Required:(a) Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Van, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item.(Note: The beginning Van account balance is $0.)(b) Show the impact (increase or decrease) of transactions 1-11 on the beginning balances, and total the columns to show that assets equal liabilities plus stockholders' equity as of January 31.