Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Expert Consulting Services Inc. was organized on March 1, 2010 by two former college roommates. The corporation provides computer consulting services to small businesses. The following transactions occurred during the first month of operations:

March 2: Received contributions of $20,000 from each of the two principal owners of the new business in exchange for shares of stock.
March 7: Signed a two-year promissory note at the bank and received cash of $15,000. Interest, along with the $15,000, will be repaid at the end of the two years.
March 12: Purchased $700 in miscellaneous supplies on account. The company has 30 days to pay for the supplies.
March 19: Billed a client $4,000 for services rendered by Expert in helping to install a new computer system. The client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days.
March 20: Paid $1,300 bill from the local newspaper for advertising for the month of March.
March 22: Received 25% of the amount billed to the client on March 19.
March 26: Received cash of 2,800 for services provided in assisting a client in selecting software for its computer.
March 29: Purchased a computer system for $8,000 cash.
March 30: Paid $3,300 of salaries and wages for March.
March 31: Received and paid $1,400 in gas, electric, and water bills.

Required:

1. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the format in Exhibit 3-1. Identify each transaction with the date.
2. Prepare an income statement for the month ended March 31, 2010.
3. Prepare a classified balance sheet at March 31, 2010.
4. From reading the balance sheet you prepared in 93), what events would you expect to take place in April?
describe your answer.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M929185

Have any Question? 


Related Questions in Basic Finance

1 suppose that apples profits are expected to grow twice as

1. Suppose that Apple's profits are expected to grow twice as fast as Microsoft's. Which firm's stock should be the better investment? Briefly explain. 2. Henry Blodget worked for Merrill Lynch during the dot-com boom. T ...

What are the three ways in which derivatives can be misused

What are the three ways in which derivatives can be misused? Contrast dollar return and percentage return. Be sure to identify which return is more useful when comparing investments? Compare and contrast options and forw ...

1 what is the importance of bond ratings2 discuss the

1. What is the importance of bond ratings? 2. Discuss the relevance of the different types of yields. 3. Discuss how the use of the concepts, convexity, and duration, can assist investors in the management of their bond ...

What is operating cash flow ocf how is it calculatedwhat is

What is operating cash flow (OCF)? How is it calculated? What is free cash flow (FCF)? How is it calculated from OCF? Why do financial managers focus attention on the value of FCF?

1 explain the rationale behind time series designs2

1. Explain the rationale behind time series designs. 2. Describe the simple interrupted time series design. 3. Why is contemporary history a threat to internal validity in a simple interrupted time series design?

Abc corp is contemplating forming a new enterprise to

ABC Corp. is contemplating forming a new enterprise to produce cell phones. The sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $2.50; and management estima ...

1 in analyzing the data from an experiment why is it not

1. In analyzing the data from an experiment, why is it not sufficient simply to examine the condition means to see whether they differ? 2. Assuming that all confounds were eliminated, the means of the conditions in an ex ...

1 small savers can usually receive a higher interest rate

1. Small savers can usually receive a higher interest rate from money market mutual funds than from bank savings accounts. So, how are banks able to attract small savers? 2. Financial journalist David Wessel has describe ...

1 how would a relatively high home inflation rate affect

1. How would a relatively high home inflation rate affect the home country's current account, other things being equal? 2. Is a negative current account harmful to a country? Discuss. 3. Explain why a stronger dollar cou ...

Cortez art gallery is adding to its existing buildings at a

Cortez art gallery is adding to its existing buildings at a cost of $ 2 million. The gallery expects to bring in additional cash flows of $ 520,000, $ 700,000, and $ 1,000,000 over the next three years. Given a required ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen