On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100.
On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...
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Prepare the financial statemetns
![On April 1, 2019, Betty Booth incorporated a consulting business known as Booth
Consulting. Booth Consulting entered into the following transactions during April:
Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common
stock.
1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at
6% are due June 30, 2019.
1. Purchased supplies, $1,400 and office equipment, $10,500 for cash.
1. Paid four months' rent on a lease rental contract, $4,800.
2. Paid the premium on a three-month property and casualty insurance policy,
$2,100.
4. Received cash from clients as an advanct payment for services to be provided and
recorded it as unearned revenue, $6,000.
5. Purchased additional office equipment on account from Office Station Co.,
$2,000.
6. Provided consulting services on account, $4,700.
10. Paid cash for an April newspaper advertisement, $120.
12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200.
12. Provided consulting services on account, $4,200.
14. Paid part-time receptionist for two weeks' salary, $750.
17. Recorded cash from cash clients for service revenue, $6,250.
18. Paid cash for supplies, $900.
20. Provided consulting services on account, $2,100.
24. Recorded cash from cash clients for service revenue, $3,850.
26. Received cash from clients on accounts, $5,600.
27. Paid part-time receptionist for two weeks' salary, $750.
29. Paid telephone bill for April, $330.
30. Paid electricity bill for April, $250.
30. Recorded cash from cash clients for service revenue, $3,250.
30. Provided consulting services on account, $1,500.
30. Paid Betty Booth a $5,000 Dividend.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d39f439-c0df-4260-bff7-863bf3eaa9a0%2F434f2745-4b14-4473-b1b0-29f0a6b9ff90%2Fqc80hs7_processed.png&w=3840&q=75)
Transcribed Image Text:On April 1, 2019, Betty Booth incorporated a consulting business known as Booth
Consulting. Booth Consulting entered into the following transactions during April:
Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common
stock.
1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at
6% are due June 30, 2019.
1. Purchased supplies, $1,400 and office equipment, $10,500 for cash.
1. Paid four months' rent on a lease rental contract, $4,800.
2. Paid the premium on a three-month property and casualty insurance policy,
$2,100.
4. Received cash from clients as an advanct payment for services to be provided and
recorded it as unearned revenue, $6,000.
5. Purchased additional office equipment on account from Office Station Co.,
$2,000.
6. Provided consulting services on account, $4,700.
10. Paid cash for an April newspaper advertisement, $120.
12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200.
12. Provided consulting services on account, $4,200.
14. Paid part-time receptionist for two weeks' salary, $750.
17. Recorded cash from cash clients for service revenue, $6,250.
18. Paid cash for supplies, $900.
20. Provided consulting services on account, $2,100.
24. Recorded cash from cash clients for service revenue, $3,850.
26. Received cash from clients on accounts, $5,600.
27. Paid part-time receptionist for two weeks' salary, $750.
29. Paid telephone bill for April, $330.
30. Paid electricity bill for April, $250.
30. Recorded cash from cash clients for service revenue, $3,250.
30. Provided consulting services on account, $1,500.
30. Paid Betty Booth a $5,000 Dividend.
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