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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the second photo are the options.

Transcribed Image Text: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.
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.
March 12) The company paid $7,000 cash to settle the
account payable created on March 3.
March 19) The company paid $6,700 cash for the premium
on a 12-month insurance policy. The company's policy is to
record prepaid expenses in balance sheet accounts.
Mar. 22) The company received $5,300 cash as partial
payment for the work completed on March 9.
Mar. 25) The company completed work for another client
for $5,300 on credit.
March 29) The company paid $5,700 cash in dividends.
March 30) The company purchased $1,200 of additional
office supplies on credit.
Impact on Equity
March 31) The company paid $1,100 cash for this month's
utility bill.
Total impact on equity
$
$
215,400
215,400

Transcribed Image Text:ord
nd
Decreased equity - Dividends
Decreased equity - Expense
Increased equity - Revenue
Increased equity - Stockholder investment
No change in equity
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