Question

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 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 Noncash Assets Contrib. Capital Cash Asset + Liabilities Earned Capital + + 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