Reference no: EM132965329
Problem 1: Prepare journal entries for each transaction and identify the financial statement impact of each entry.
The financial statements are automatically generated based on the journal entries recorded.
Jan. 1 Lindsey Martin, owner, invested $133,750 cash in the company.
Jan. 2 The company purchased office supplies for $2,350 cash.
Jan. 3 The company purchased $16,050 of office equipment on credit.
Jan. 4 The company received $17,700 cash as fees for services provided to a customer.
Jan. 5 The company paid $16,050 cash to settle the payable for the office equipment purchased on January 3.
Jan. 6 The company billed a customer $3,800 as fees for services provided.
Jan. 7 The company paid $2,325 cash for the monthly rent.
Jan. 8 The company collected $1,950 cash as partial payment for the account receivable created on January 6.
Jan. 9 Lindsey Martin withdrew $11,100 cash from the company for personal use.
- Requirement
- General Journal
- General Ledger
- Trial Balance
- Income Statement
- St Owners Equity
- Balance Sheet
The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Equity includes the ending capital balance from the Statement of Owner's Equity.