Hawks Management Consulting Inc. prepares quarterly financial statements (ie. every three months). Hawks Management Consulting Inc. had the following account balances at the beginning of January 2023:

Name Balance January 1, 2023

Cash $ 41,200

Trade receivables 6,800

Contributed capital 4,700

Deferred revenue 8,200

Supplies inventory 1,500

Trade payables 6,900

Retained earnings 29,700

Hawks Management Consulting Inc. had the following transactions occurred during the three months ended March 31, 2023

Jan. 1 Rented an office at a monthly rent of $700. Paid the landlord $8,400 representing twelve months rent in advance for the period January 1 to December 31, 2023.

Jan. 1 Purchased office equipment for $40,000. Paid $10,000 cash and signed a note payable for $30,000. The note payable bears interest at a rate of 8% per year. Interest is payable annually on January 1. The note amount of $30,000 is payable on January 1, 2025.

Jan 31 Received $7,200 cash from a customer, Mr. Walker, as a deposit for consulting services to be performed equally in March, April, and May 2023. The consulting services were subsequently performed as scheduled.

Feb. 5 Collected $6,800 cash from a customer for consulting services performed in December 2022.

Fab. 15 Performed consulting services in the amount of $5,000 for Mr. Jim Bean. Mr. Bean agreed to pay Hawks Management Consulting Inc. on June 1, 2023.

Feb. 25 Purchased supplies inventory for $3,300 on account. The amount is to be paid on April 20, 2023.

Feb 26 Declared and paid a dividend to shareholders of $4,000.

Feb.28 Paid trade payables of $6,900.

Feb 28 Performed consulting services during February 2023 for Ms. Hagerty. Ms. Hegarty had paid for the services in December 2022 by paying $8,200 in cash to Hawks Management Consulting Inc.

Mar. 9 Performed consulting services for Mr. Mamo and received full cash payment of $3,000.

Mar. 31 Paid $3,000 in cash to employees for wages earned during the three months ended Mar. 31, 2016. The employees earned a further $2,000 ($5,000 total) that will be paid to them in April 2023.

Mar. 31 Received a $500 accounting bill for accounting services received during the period Jan. 1 to Mar. 31. The accounting bill will be paid in April.

Mar. 31 Counted supplies inventory and determined that there were $1,500 in supplies inventory remaining.

Mar. 31 Recorded depreciation on the office equipment of $1200 and made other necessary quarter end adjusting entries. Ignore income taxes.

Required

Use the information provided to prepare:

Journal entries to record all transactions and all necessary quarter end adjusting journal entries. 18 Marks

T accounts for each account showing opening balances (if applicable), transactions and final balances at March 31, 2023. 5 Marks

A single-step Statement of Income for the three months ended March 31, 2023. 3 Marks

A classified Statement of Financial Position at March 31, 2023. 4 Marks