Essay
Danielle McLynn started a consulting business, McLynn Consulting, on January 1, 2013, and the business engaged in the following transactions during the year:
1. Issued $8,000 of common stock for cash
2. Provided services on account, $26,500
3. Incurred $17,500 of operating expense, but only paid $12,000 of this amount
4. Collected $19,000 of the revenue that was previously recorded on account
5. Paid a cash dividend of $4,500 to the stockholders
Required:
a) Show the effects of the above transactions on the accounting equation. 
b) Prepare an income statement and statement of cash flows for 2013.
Correct Answer:
Verified
Correct Answer:
Verified
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