Analyzing and Reporting Financial Statement Effects of Transactions
M.E. Carter launched Carter Company, a professional services firm on March 1. The firm will prepare financial statements at each month-end. In March (its first month), Carter executed the following transactions.
a. Carter (owner) invested in the company $100,000 cash and $20,000 in property and equipment. The company issued common stock to Carter.
b. The company paid $3,200 cash for rent of office furnishings and facilities for March.
c. The company performed services for clients and immediately received $4,000 cash for these services.
d. The company performed services for clients and sent a bill for $24,000 with payment due within 60 days.
e. The company compensated an office employee with $4,800 cash as salary for March.
f. The company received $10,000 cash as partial payment on the amount owed from clients in transaction d.
g. The company paid $935 cash in dividends to Carter (owner).

Prepare an income statement for Carter Company for the month of March.

Do not use negative signs with your answers unless to indicate a net loss.

Carter Company
Income Statement
For the month ended March 31
Sale revenue		Answer
Expenses
Rent expense	Answer
Wage expense	Answer	Answer
Net income (loss)		Answer

Answer rating: 100% (QA)

E342 Balance sheet Income Statement Transaction Cash Asset Non Cash Asset Liabilities Contributed Ca... View the full answer