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. Enter the transactions, a
through g, into the financial statement effects template below. 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 earned. 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
recieved $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).
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