Transaction March 1) Clark invested $192,000 cash along with $23,400 Increased equity - Stockholder in office equipment in the company in exchange for common stock. investment March 2) The company prepaid $10,000 cash for six months' rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Impact on Equity March 3) The company made credit purchases of office equipment for $4,400 and office supplies for $2,600. Payment is due within 10 days. March 6) The company completed services for a client and immediately received $5,400 cash. March 9) The company completed a $8,900 project for a client, who must pay within 30 days. $ 215,400
Transaction March 1) Clark invested $192,000 cash along with $23,400 Increased equity - Stockholder in office equipment in the company in exchange for common stock. investment March 2) The company prepaid $10,000 cash for six months' rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Impact on Equity March 3) The company made credit purchases of office equipment for $4,400 and office supplies for $2,600. Payment is due within 10 days. March 6) The company completed services for a client and immediately received $5,400 cash. March 9) The company completed a $8,900 project for a client, who must pay within 30 days. $ 215,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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