QUESTIONS Not complete Points out of 4.00 P Flag question Analyzing and Reportin
ID: 2585497 • Letter: Q
Question
QUESTIONS Not complete Points out of 4.00 P Flag 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 $280,000 cash and $56,000 in property and equipment. The company issued common stock to Carter b. The company paid $8,960 cash for rent of office furnishings and facilities for March. c. The company performed services for clients and immediately received $11,200 cash earned. d. The company performed services for clients and sent a bill for $67,200 with payment due within 60 days. e. The company compensated an office employee with $13,440 cash as salary for March. f. The company received $28,000 cash as partial payment on the amount owed from clients in transaction d. g. The company paid $2,618 cash in dividends to Carter (owner). Use negative signs with answers, if appropriate. Income Statement Balance Sheet Noncash Earned Transaction Cash Asset+ RevenuesEx Expenses - Net income Assets Liabilities + Contrib. Capital 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 CheckExplanation / Answer
Effect of transaction :
Transaction cash asset + non cash assets = Liabilities + contributed capital + earned capital revenue - expenses = net income a) Issue stock for cash and PPE 280000 56000 336000 b) Paid rent (8960) (8960) 8960 c) Performed service for cash 11200 11200 11200 d) Performed service on account 67200 67200 67200 e) Paid wages (13440) (13440) 13440 f) Received payment on accounts receivable 67200 67200 g paid dividend (2618) (2618)