A Using the accounting equation for transaction analysis and preparing financial statements Alfonso Sheen recently opened his own accounting firm, which he operates as a corporation. The name of the new entity is Alfonso Sheen, CPA. Sheen experienced the following events during the organizing phase of the new business and its first month of operations in 2016:
1. the effects of the events on the accounting equation of Alfonso Sheen, CPA. Use a format similar to Exhibit 1-6.
2. Prepare the following financial statements:
a. Income statement.
b. Statement of retained earnings.
c. Balance sheet.
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