General Instructions 1. The following worksheet may be used to complete the exercise/problem. You may need to refer to your textbook for additional information 2. The blue cells are for data entry. Enter text in the T cells, formulas in the F cells, and dollars or numbers in the $ cells. 3. The completed exercise/problem may be printed or e-mailed per direction from your instructor. P3-3A Dynamic Services Inc. was organized on March 1 by two former college roommates. The corporation will provide computer tax services to small businesses. The following transactions occurred during the first month of operations: March 2: Received contributions of $10,000 from each of the two principal owners in exchange for shares of stock. March 7 Signed a two-year promissory note at the bank and received cash of $7,500. Interest, along with the $7,500, will be repaid at the end of the two years March 12: Purchased miscellaneous supplies on account for $350, payment due in 30 days. P3-3A March 2: March 7: March 12: March 19: Received contributions of $10,000 from each of the two principal owners in exchange for shares of stock. Signed a two-year promissory note at the bank and received cash of $7,500. Interest, along with the $7,500, will be repaid at the end of the two years. Purchased miscellaneous supplies on account for $350, payment due in 30 days. Billed a client $2,000 for tax preparation services. According to an agreement between the two companies, the client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days. Paid a $650 bill from the local newspaper for advertising for the month of March Received 25% of the amount billed the client on March 19. Received cash of $1,400 for services provided in assisting a client in preparing its tax return. Purchased a computer system for $4,000 in cash Paid $1,650 in salaries and wages for March. Received and paid $700 of gas, electric, and water bills. March 20: March 22: March 26 March 29: March 30: March 31: 2. Prepare an income statement for the month of March. DYNAMIC SERVICES INC. INCOME STATEMENT FOR THE MONTH OF MARCH Revenues: Expenses Net income 3. Prepare a classified balance sheet at March 31. Note: List assets and liabilities in the order of liquidity. DYNAMIC SERVICES INC. BALANCE SHEET MARCH 31 Assets Current assets U Total current assets Property, plant, and equipment: Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term debt: Total liabilities Total stockholders' equity Total liabilities and stockholders' equity