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 $180,000 cash and $36,000 in property and equipment. The company issued common stock to Carter. b. The company paid $5,760 cash for rent of office furnishings and facilities for March. c. The company performed services for clients and immediately received $7,200 cash earned. d. The company performed services for clients and sent a bill for $43,200 with payment due within 60 days. e. The company compensated an office employee with $8,640 cash as salary for March. f. The company received $18,000 cash as partial payment on the amount owed from clients in transaction d. g. The company paid $1,683 cash in dividends to Carter (owner).

Use negative signs with answers, if appropriate.

						Balance Sheet								Income Statement
Transaction		Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital		Revenues	-	Expenses	=	Net income
a. Issued stock for cash and PPE.
b. Paid rent.
c. Performed services for cash.
d. Performed services on account.
e. Paid wages.
f. Received payments on accounts receivable.
g. Paid dividends