Reference no: EM133125722

Question - Record the following transactions of Swifty Computer Service, owned by Jeff Smith, for the month of March 2021.

1-Mar Bill Smith invested $3,000 cash in exchange for common stock to start the business.

15-Mar Bill provided services and received cash amounting to $5,400 from customers.

16-Mar Purchased supplies on account, $100.

17-Feb Paid for gas and oil, $800.

18-Mar Paid salaries, $5,000.

21-Mar Provided service on credit, $600.

28-Mar Bill provided services and received cash amounting to $6,000.

29-Mar Paid for truck and equipment rental, $2,500.

30-Mar Speedy Computer Service paid cash dividends of $2,000 to the owner.

Required - Use the attached template to complete the following:

1. Record the above transactions in general journal form.

2. Prepare a trial balance after posting the entries to T-accounts (you can make your own T-accounts).

3. Prepare an income statement from trial balance.

4. Prepare a statement of retained earnings from the trial balance and income statement.

5. Prepare a balance sheet using the trial balance totals and the statement of retained earnings.

6. Explain why the company's cash balance does not agree with net income.