Reference no: EM132218346

Question - Alex established Alex Consulting Company on September 1, 2018, as a backup plan.

The company had the following transactions during September.

Sept. 1 The company sold shares of common stock for $30,000 cash.

Sept. 1 The company purchased a one-year insurance policy for $300 in cash.

Sept. 1 The company purchased office equipment costing $8,000 by signing a 6% note. The Equipment has a 5 year life and no salvage value. The note requires monthly principal payments of $225 beginning on October 1st until the balance is paid.

Sept. 10 The company purchased $735 of office supplies for cash.

Sept. 15 The company paid legal and registration fees to register their trademark which is his nickname Sanchize. The fees incurred totaled $4,000, which were paid in cash.

Sept. 29 The company billed customers $5,500 for consulting services performed.

Sept. 30 The company paid $1,450 for employee's salary.

Sept. 30 Since the company had a good month so Sanchez declared a $1,000 dividend to be paid on October 10th.

Additional Information: On September 30th, the company took an inventory of the supplies and found that they had $500 of supplies on hand.

Equipment purchased before the 15th of the month are depreciated for a whole month using the straight-line method.

On October 3rd received the September utilities bill for $188.

Required:

Journalize the transactions.

Prepare the adjusting entries.

Post all entries to the accounts.

Prepare a Single-Step Income Statement, Retained Earnings Statement and a Classified Balance Sheet for his first month of operations.

Prepare the closing entries.

Comment on the company's liquidity, capital structure and financial flexibility and their overall financial position.