Reporting financial statement effects of transactions

Assignment Help Finance Basics

Reference no: EM131815599

Question: 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)

Reference no: EM131815599

Questions Cloud

What motivation do you see for taking a stand : Analyze the moral, ethical, and legal implications utilized in this situation. Describe your role as a moral agent or advocate for this specific issue.

Calculate the total manufacturing costs for january : Calculate the total manufacturing costs for the month of January

Agencies that regulate the transportation industry : Select a regulatory agency and discuss how it specifically impacts the transportation industry.

Define the client personal and financial goals : A practitioner and a client should mutually define the client’s personal and financial goals.

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.

Components of a sow for the purpose of open competition : Examine the components of a SOW for the purpose of open competition without restrictive provisions. Select a field that you are interested

Result of globalization in society : An array of trends is evolving as a result of globalization in society. Discuss one such trend and the implications it has on the public relations field.

Discuss what is the marginal cost of a pair of jeans : If the total cost to make 4 pairs of jeans is $45, what is the marginal cost of a 5th pair of jeans

How many of each product should the chicago plant make : The company's production capacity is 100,000 labor hours per month. How many of each product should the Chicago plant make? Explain your answer

User Account

All Pages