Ask Question, Ask an Expert


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.


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

What is the correct ranking for the following stocks

What is the correct ranking for the following stocks, highest to lowest, based on their total risk level? Night Ryder has an average return of 15 percent and a standard deviation of 35 percent. WholeMart has an average r ...

Question 1 when ranking security returns from highest

Question 1. When ranking security returns from highest return to lowest return, the data shows that the annualized returns are as follows: Large stocks, small stocks, long-term corporate bonds, long-term government bonds ...

Question 1 according to the text a risk-averse investor

Question 1. According to the text, a risk-averse investor _____. demands a premium for assuming risk will only participate in low-risk or risk-free investments is one of a small minority in the United States More than on ...

1 tall trees inc is using the net present value npv when

1. Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.83 percent. The initial outlay for the pr ...

1 describe how structural equations modeling works2

1. Describe how structural equations modeling works. 2. Distinguish between latent variable modeling and path analysis as types of structural equations modeling.

A multiple-choice test consists of 7 questions each

A multiple-choice test consists of 7 questions. Each question has answer choices of a, b, c, and d, and only one of the choices is correct. If a student randomly guesses on each question, what is the probability that she ...

Distinguish between high- and low-quality internet

Distinguish between high- and low-quality Internet sources. Imagine that a person you admire is coming to speak on campus. You have been selected to introduce the speaker to your entire graduating class. Of course you wa ...

Determine which report format is bestfor each of the

Determine which report format is best. For each of the following scenarios, which report format would you choose and why? If you would use a primarily text-based report format, identify whether you would create a separat ...

Finance final exam assignment -answer all questions below

Finance Final Exam Assignment - Answer all questions below. Make sure to show your work. Let me know if you have any question. 1. Suppose the yield on short-term government securities (perceived to be risk-free) is about ...

The following list contains several variables that

The following list contains several variables that differentiate college students. a. Select one variable from the list and then think of a second variable (on the list or one of your own) that should be positively relat ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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