Using the trial balance prepared for X-Factor Accounting in Part 3 of Problem 2-4A, prepare an income statement and statement of changes in equity for the month ended March 31, 2014, and a balance sheet at March 31, 2014.
In Problem, Abe Factor opened a new accounting practice called X-factor Accounting and completed these activities during March 2014:
Mar 1 Invested $50,000 in cash and office equipment that had a fair value of $12,000.
1 Prepaid $9,000 cash for three months' rent for an office.
3 Made credit purchases of used office equipment for $6,000 and office supplies for $1,200.
5 Completed work for a client and immediately received $6,200 cash.
9 Completed a $4,000 project for a client, who will pay within 30 days.
11 Paid the account payable created on March 3.
15 Paid $3,000 cash for the annual premium on an insurance policy.
20 Received $1,500 as partial payment for the work completed on March 9.
22 Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received.
23 Completed work for another client for $2,850 on credit.
27 Abe Factor withdrew $3,600 cash from the business to pay some personal expenses.
30 Purchased $650 of additional office supplies on credit.
31 Paid $860 for the month's utility bill.