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 $200,000 cash and $40,000 in property and equipment. The company issued common stock to Carter. b. The company paid $6,400 cash for rent of office furnishings and facilities for March. c. The company performed services for clients and immediately received $8,000 cash for these services. d. The company performed services for clients and sent a bill for $48,000 with payment due within 60 days. e. The company compensated an office employee with $9,600 cash as salary for March. f. The company received $20,000 cash as partial payment on the amount owed from clients in transaction d. g. The company paid $1,870 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
Wage expense	Answer	Answer
Net income (loss)		Answer