Using the accounting framework above and the events below, record all of the necessary transactions for the month.

Assets:

Cash = 35,515

A/R = 4700

Pre. Exp. = 0

Supp. = 460

Equip. = 0

A/D = 0

Liabilities + Owner's Equity

A/P = 1400

N/P = 4600

Unearned Rev. = 860

C/S = 13,460

R/E = 20,355

1-Mar Borrowed $35,000 from a bank. 1-Mar Purchased equipment for $36,360; management expects it will be useful for 8 years at which time it should be worth $1,800. 1-Mar Performed $45,500 of consulting services for customers. 1-Mar Purchased a four month insurance policy for $1,000. 1-Mar Paid rent of $2,800 for administrative office space for the month. 6-Mar Received $750 from customers for services previously performed on account. 10-Mar Purchased supplies for $610 on account. 12-Mar Paid advertising of $575. 18-Mar Performed $20,800 of services for customers on account. 22-Mar Received $1,200 from a customer for services sold in advance. 24-Mar Received and paid utility bill of $875. 25-Mar Made $2,400 payment on bank loan. 26-Mar Performed $650 of services that were previously sold in advance. 28-Mar Paid for supplies purchased on March 10th. 31-Mar Paid dividends of $800. 31-Mar Paid employee payroll of $8,950. 31-Mar Supplies on hand reported at $260.

2. Use the resulting accounting framework to prepare an income statement, statement of equity, balance sheet and statement of cash flows for March.

3. Record the necessary transaction related to the equipment assuming it was sold for $32,000 on April 1st of the same year.

4. If for example the company had forgotten to record the transaction on March 1st related to rent, then its assets would be overstated by $2,800 and its net income would be overstated by $2,800 in its March financial statements. What would be the impact if the company forgot to record the transaction on March 18th?