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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
X-FACTOR ACCOUNTING
Income Statement
For Month Ended March 31, 2020
Revenues:
Transcribed Image Text:X-FACTOR ACCOUNTING
Balance Sheet
March 31, 2020
Assets
Liabilities
Equity
Total assets
$
Total liabilities and equity
$
%24
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