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 $80,000 cash and $16,000
in property and equipment. The company issued common stock to
Carter.
b. The company paid $2,560 cash for rent of office furnishings and
facilities for March.
c. The company performed services for clients and immediately
received $3,200 cash for these services.
d. The company performed services for clients and sent a bill for
$19,200 with payment due within 60 days.
e. The company compensated an office employee with $3,840 cash as
salary for March.
f. The company received $8,000 cash as partial payment on the
amount owed from clients in transaction d.
g. The company paid $748 cash in dividends to Carter (owner).
Use negative signs with answers, if appropriate.
Balance Sheet | Income Statement | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Transaction | Cash Asset | + | Noncash Assets |
= | Liabilities | + | Contrib. Capital |
+ | Earned Capital |
Revenues | - | Expenses | = | Net income | ||
a. Issued stock for cash and PPE. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | ||||||||
b. Paid rent. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | ||||||||
c. Performed services for cash. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | ||||||||
d. Performed services on account. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | ||||||||
e. Paid wages. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | ||||||||
f. Received payments on accounts receivable. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | ||||||||
g. Paid dividends | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer |
Analyzing and Reporting Financial Statement Effects of Transactions M.E. Carter launched Carter Company, a professional services...
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...
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), Carte executed the following transactions. Enter the transactions, a through g, into the financial statement effects template below. a. Carter (owner) invested in the company $80,000 cash and $16,000 in property and equipment. The company issued common stock to Carter. b. The company paid $2,560 cash for rent of office furnishings and facilities for...
i want to know how they got these numbers. thanks is this clear ? 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 through into the financial statement effects template below. Carter (owner invested in the company $100.000 cash and $20.000 in property and equipment. The company...
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