Abe Factor opened a new accounting practice called X-Factor Accounting and completed these activities during March 2020: March 1 Invested $50,000 in cash and office equipment that had a fair value of $12,000. 1 Prepaid $9,000 cash for three months’ rent for an office. 3 Made credit purchases of used office equipment for $6,000 and office supplies for $1,200. 5 Completed work for a client and immediately received $6,200 cash. 9 Completed a $4,000 project for a client, who will pay within 30 days. 11 Paid the account payable created on March 3. 15 Paid $3,000 cash for the annual premium on an insurance policy. 20 Received $1,500 as partial payment for the work completed on March 9. 22 Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received. 23 Completed work for another client for $2,850 on credit. 27 Abe Factor withdrew $3,600 cash from the business to pay some personal expenses. 30 Purchased $650 of additional office supplies on credit. 31 Paid $860 for the month’s utility bill. Prepare an income statement and statement of changes in equity for the month ended March 31, 2020, and a balance sheet at March 31, 2020.
Abe Factor opened a new accounting practice called X-Factor Accounting and completed these activities during March 2020: March 1 Invested $50,000 in cash and office equipment that had a fair value of $12,000. 1 Prepaid $9,000 cash for three months’ rent for an office. 3 Made credit purchases of used office equipment for $6,000 and office supplies for $1,200. 5 Completed work for a client and immediately received $6,200 cash. 9 Completed a $4,000 project for a client, who will pay within 30 days. 11 Paid the account payable created on March 3. 15 Paid $3,000 cash for the annual premium on an insurance policy. 20 Received $1,500 as partial payment for the work completed on March 9. 22 Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received. 23 Completed work for another client for $2,850 on credit. 27 Abe Factor withdrew $3,600 cash from the business to pay some personal expenses. 30 Purchased $650 of additional office supplies on credit. 31 Paid $860 for the month’s utility bill. Prepare an income statement and statement of changes in equity for the month ended March 31, 2020, and a balance sheet at March 31, 2020.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an...
Related questions
Topic Video
Question
Abe Factor opened a new accounting practice called X-Factor Accounting and completed these activities during March 2020:
March | 1 | Invested $50,000 in cash and office equipment that had a fair value of $12,000. |
1 | Prepaid $9,000 cash for three months’ rent for an office. | |
3 | Made credit purchases of used office equipment for $6,000 and office supplies for $1,200. | |
5 | Completed work for a client and immediately received $6,200 cash. | |
9 | Completed a $4,000 project for a client, who will pay within 30 days. | |
11 | Paid the account payable created on March 3. | |
15 | Paid $3,000 cash for the annual premium on an insurance policy. | |
20 | Received $1,500 as partial payment for the work completed on March 9. | |
22 | Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received. | |
23 | Completed work for another client for $2,850 on credit. | |
27 | Abe Factor withdrew $3,600 cash from the business to pay some personal expenses. | |
30 | Purchased $650 of additional office supplies on credit. | |
31 | Paid $860 for the month’s utility bill. |
Prepare an income statement and statement of changes in equity for the month ended March 31, 2020, and a balance sheet at March 31, 2020.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning