Question: Analyzing Transactions Using the Financial Statement Effects Template
Enter the effects of each of the transactions a through g from Exercise using the ?nancial statement effects template shown in the module.
Exercise: Analyzing and Reporting Financial Statement Effects of Transactions
M.E. Carter launched a professional services ?rm on March 1. The ?rm will prepare ?nancial statements at each month-end. In March (its ?rst month), Carter executed the following transactions. Prepare an income statement for Carter Company for the month of March.
a. Carter (owner) invested in the company, $100,000 cash and $20,000 in property and equipment.
The company issued common stock to Carter.
b. The company paid $3,200 cash for rent of of?ce furnishings and facilities for March.
c. The company performed services for clients and immediately received $4,000 cash earned.
d. The company performed services for clients and sent a bill for $24,000 with payment due within 60 days.
e. The company compensated an of?ce employee with $4,800 cash as salary for March.
f. The company received $10,000 cash as partial payment on the amount owed from clients in transaction d.
g. The company paid $935 cash in dividends to Carter (owner)