Question

Denzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Mar. 1 Brooks invested $150,000 cash along with $22,000 in office equipment in the company. Mar. 2 The company prepaid $6,000 cash for six months' rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Mar. 3 The company made credit purchases of office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days. Mar. 6 The company completed services for a client and immediately received $4,000 cash. Mar. 9 The company completed a $7,500 project for a client, who must pay within 30 days. Mar. 12 The company paid $4,200 cash to settle the account payable created on March 3. Mar. 19 The company paid $5,000 cash for the premium on a 12-month insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. Mar. 22 The company received $3,500 cash as partial payment for the work completed on March 9. Mar. 25 The company completed work for another client for $3,820 on credit. Mar. 29 Brooks withdrew $5,100 cash from the company for personal use. Mar. 30 The company purchased $600 of additional office supplies on credit. Mar. 31 The company paid $500 cash for this month's utility bill. Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Impact on Equity Irinn the dropdown buttons, select the financial statement elements and account titles to be included on the balance

Answer 1

Prepare Balance Sheet as follows:

Venture Consultants
Balance Sheet
March 31, 2017
Assets
Current Assets:
Cash	$136,700
Accounts receivable	$7,820
Office supplies	$1,800
Prepaid rent	$6,000
Prepaid insurance	$5,000
Total Current Assets		$157,320
Office equipment		$25,000
Total Assets		$182,320
Liabilities
Accounts payable		$600
Stockholders' Equity
Common stock	$172,000
Retained earnings	$9,720	$181,720
Total Liabilities and SE		$182,320

_____________________________________________________________

Impact on equity as follows:

Date	Impact on Equity	Amount
Mar. 01	Equity increase ($150,000 + $22,00)	$172,000
Mar. 02	No impact on equity	-
Mar. 03	No impact on equity
Mar. 06	Revenue will increase equity	$4,000
Mar. 09	Revenue will increase equity	$7,500
Mar. 12	No impact on equity	-
Mar. 19	No impact on equity	-
Mar. 22	No impact on equity	-
Mar. 25	Revenue will increase equity	$3,820
Mar. 29	Equity will decrease	($5,100)
Mar. 30	No impact on equity	-
Mar. 31	Equity will decrease	($500)
	Total impact on equity	$181,720
	Stockholders' Equity	$181,720