Neveranerror Inc. was organized on June 2 by a group of accountants to provide accounting and tax services to small businesses. The following transactions occurred during the first month of business: Required: Prepare journal entries on the books of Neveranerror Inc. to record the transactions entered into during the month. Ignore depreciation expense and interest expense. Indicate the effect on financial statement items by selecting "–" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. June 2: Received contributions of $11,300 from each of the three owners of the business in exchange for shares of stock. June 5: Purchased a computer system for $11,400. The agreement with the vendor requires a down payment of $2,500 with the balance due in 60 days. June 8: Signed a two-year promissory note at the bank and received cash of $21,800. June 15: Billed $14,560 to clients for the first half of June. Clients are billed twice a month for services performed during the month, and the bills are payable within ten days. June 17: Paid a $900 bill from the local newspaper for advertising for the month of June. June 23: Received the amounts billed to clients for services performed during the first half of the month. June 28: Received and paid gas, electric, and water bills. The total amount is $2,790. June 29: Received the landlord’s bill for $2,050 for rent on the office space that Neveranerror leases. The bill is payable by the 10th of the following month. June 30: Paid salaries and wages for June. The total amount is $5,460. June 30: Billed $18,360 to clients for the second half of June. June 30: Declared and paid dividends in the amount of $4,710. Prepare a trial balance at June 30. If an amount box does not require an entry, leave it blank. 3a. Prepare the income statement for the month of June. 3b. Prepare the statement of retained earnings for the month of June. If an amount is zero, enter "0". 3c. Prepare the classified balance sheet at June 30. From your reading of the financial statements for the first month, would you consider working at the company? Why? Yes or.No The company Was or was not able to generate revenues and control costs. The profit margin was 159%37%66%59% and current ratio was 6.60.22.40.42
Neveranerror Inc. was organized on June 2 by a group of accountants to provide accounting and tax services to small businesses. The following transactions occurred during the first month of business:
Required:
- Prepare
journal entries on the books of Neveranerror Inc. to record the transactions entered into during the month. Ignoredepreciation expense and interest expense.
Indicate the effect on financial statement items by selecting "–" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement.
June 2: Received contributions of $11,300 from each of the three owners of the business in exchange for shares of stock.
June 5: Purchased a computer system for $11,400. The agreement with the vendor requires a down payment of $2,500 with the balance due in 60 days.
June 8: Signed a two-year promissory note at the bank and received cash of $21,800.
June 15: Billed $14,560 to clients for the first half of June. Clients are billed twice a month for services performed during the month, and the bills are payable within ten days.
June 17: Paid a $900 bill from the local newspaper for advertising for the month of June.
June 23: Received the amounts billed to clients for services performed during the first half of the month.
June 28: Received and paid gas, electric, and water bills. The total amount is $2,790.
June 29: Received the landlord’s bill for $2,050 for rent on the office space that Neveranerror leases. The bill is payable by the 10th of the following month.
June 30: Paid salaries and wages for June. The total amount is $5,460.
June 30: Billed $18,360 to clients for the second half of June.
June 30: Declared and paid dividends in the amount of $4,710.
- Prepare a
trial balance at June 30. If an amount box does not require an entry, leave it blank.
3a. Prepare the income statement for the month of June.
3b. Prepare the statement of
3c. Prepare the classified balance sheet at June 30.
- From your reading of the financial statements for the first month, would you consider working at the company? Why?
Yes or.No
The company
Was or was not
able to generate revenues and control costs.
The profit margin was
159%37%66%59%
and
6.60.22.40.42
.
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