Question

Analyzing and Reporting Financial Statement Effects of Transactions M.E. Carter launched Carter Company, a professional services firm on March 1. The firm will prepare financial statements at each month-end. In March (its first month), Carter executed the following transactions. Enter the transactions, a through g, into the financial statement effects template below. a. Carter (owner) invested in the company $300,000 cash and $60,000 in property and equipment. The company issued common stock to Carter. b. The company paid $9,600 cash for rent of office furnishings and facilities for March. C. The company performed services for clients and immediately received $12,000 cash earned. d. The company performed services for clients and sent a bill for $72,000 with payment due within 60 days. e. The company compensated an office employee with $14,400 cash as salary for March. f. The company received $30,000 cash as partial payment on the amount owed from clients in transaction d. g. The company paid $2,805 cash in dividends to Carter (owner). Use negative signs with answers, if appropriate. Balance Sheet Income Statement Noncash Assets Contrib. Capital Earned Capital Cash Asset + = Liabilities + + Revenues - Expenses = Net income Transaction a. Issued stock for cash and PPE. b. Paid rent. c. Performed services for cash. d. Performed services on account. e. Paid wages. f. Received payments on accounts receivable. g. Paid dividends

Answer 1

income Stalement Revenue. - Eylences - Net income (9600) Balance sheet Cash Non can contaco Farned Transachon Agele * Assete = liability + met capital t contal a) issue stock for carnappe 300000 60000 360000 5) Paid Rent (960 | 2600) c) Performed service for cash 12000 12000 a) performed Service on account 72000 c) paid wages (14000) (luuoo) €) Recerved payments on alc receivables 30000 @805) (2005) (9600) 12000 12000 i 72000 12000 72000 |(144003 (14400) 0000) g) Paid dividend 20 Ending Balance 360000 315195 102000 57195 84000 24000 60mmo