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 $$280,000$ cash and $$56,000$ in property and equipment. The company issued common stock to Carter.

b$.$ The company paid $$8,960$ cash for rent of office furnishings and facilities for March.

c$.$ The company performed services for clients and immediately received $$11,200$ cash for these services.

d$.$ The company performed services for clients and sent a bill for $$67,200$ with payment due within $60$ days.

e$.$ The company compensated an office employee with $$13,440$ cash as salary for March.

f$.$ The company received $$28,000$ cash as partial payment on the amount owed from clients in transaction d$.$

g$.$ The company paid $$2,618$ 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

$8,960$

Wage expense Answer

$13,440$

Answer

$22,400$

Net income $($loss$)$ Answer