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Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March 1 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 in cash. March 30: Paid $3,300 of salaries and wages for March. March 21: Received 1 paid $1 400 in gas electric and water bille

Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March 1 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 in cash. March 30: Paid $3,300 of salaries and wages for March. March 21: Received 1 paid $1 400 in gas electric and water bille

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi! My name is Jessica and I have a income chart I need to fill out but... I don't know where to put anything and I feel like some things are out of place because it isn't balanced. Can you help me?

Date March 2 March 7 Balance March 12 Balance March 19 Balance March 20 Balance March 22 Balance March 26 Balance March 29 Balance March 30 Balance March 31 Balance Total Assets: 0.000 Cash 40,000 $ 55,000 $ 15,000 $ 55,000 $ 55,000 -1,300 $ 53,700 0 1,000 52,700 2,800 55,500 -8,000 47,500 -3,300 Accounts Receivable $ $ N 000000000 $ $ $ $ 0 $ 0 0 0 0 4,000 4,000 4,000 -1,000 3,000 3,000 Assets 3,000 $ $ $ $ $ $ $ Computer $ 0 0 0 0 0 0 0 0 0 0 0 1030000 0 8,000 8,000 Expert Consulting Services Inc. Transactions for the Month of March $ $ $ $ $ $ $ $ Supplies 0 0 0 700 700 0 700 0 700 0 700 0 700 0 700 0 Total Liabilities and Stockholders' Equity: Accounts Payable $ $ $ $ $ $ $ $ $ $ $ 0 0 0 700 700 0 700 0 700 0 0 0 700 0 700 Liabilities 0 Notes Payable $ $ $ $ 0 15,000 15,000 0 15,000 0 15,000 0 15,000 0 15,000 0 15,000 0 15,000 0 + Stockholders' Equity Capital Stock 40,000 $ 40,000 40,000 ÒÛÛÛØÒÐÀÒÒ 40,000 40,000 40,000 40,000 40,000 Retained Earnings $ $ 0 0 0 0 0 4,000 $ 4,000 0000000000 -1,300 2,700 2,700 2,800 5,500 -8,000 -2,500 -3,300
Transcribed Image Text:Date March 2 March 7 Balance March 12 Balance March 19 Balance March 20 Balance March 22 Balance March 26 Balance March 29 Balance March 30 Balance March 31 Balance Total Assets: 0.000 Cash 40,000 $ 55,000 $ 15,000 $ 55,000 $ 55,000 -1,300 $ 53,700 0 1,000 52,700 2,800 55,500 -8,000 47,500 -3,300 Accounts Receivable $ $ N 000000000 $ $ $ $ 0 $ 0 0 0 0 4,000 4,000 4,000 -1,000 3,000 3,000 Assets 3,000 $ $ $ $ $ $ $ Computer $ 0 0 0 0 0 0 0 0 0 0 0 1030000 0 8,000 8,000 Expert Consulting Services Inc. Transactions for the Month of March $ $ $ $ $ $ $ $ Supplies 0 0 0 700 700 0 700 0 700 0 700 0 700 0 700 0 Total Liabilities and Stockholders' Equity: Accounts Payable $ $ $ $ $ $ $ $ $ $ $ 0 0 0 700 700 0 700 0 700 0 0 0 700 0 700 Liabilities 0 Notes Payable $ $ $ $ 0 15,000 15,000 0 15,000 0 15,000 0 15,000 0 15,000 0 15,000 0 15,000 0 + Stockholders' Equity Capital Stock 40,000 $ 40,000 40,000 ÒÛÛÛØÒÐÀÒÒ 40,000 40,000 40,000 40,000 40,000 Retained Earnings $ $ 0 0 0 0 0 4,000 $ 4,000 0000000000 -1,300 2,700 2,700 2,800 5,500 -8,000 -2,500 -3,300
Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March 1 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 in 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.
Transcribed Image Text:Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March 1 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 in 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.
Expert Solution
Step 1

Accounting equation is the basic premise of accounting.

The accounting equation states that total assets of a company is equal to the sum of all its liabilities and its shareholder’s equity.

In other words: Total assets = total liabilities+shareholder’s equity

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