Michael Masters opens a web consulting business called Masters Consulting and completes the following transactions in March. Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Mareh 1 Masters invested $231,000 cash along with $24,700 in office equfpment in the company in exehange for common stock. March 2 The company prepaid $12,000 cash for six montha rent for an office. The company's policy is to record prepaid expenses in balance sheet accaunts. March 3 The company made credit purchases of office ecuipment for $5,700 and office supplies for $3,900, Payment is due within 10 days. March 6 The company completed services for a client and immediately received $6,700 cash. March 9 The company completed a $10,200 project for a client, who must pay within 30 days. Mareh 12 The company paid $9,600 cash to settle the account payable created on March 3. March 19 The company paid $9,300 cash for the premium on a 12 -month insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. March 22 The company received $6,100 cash as partial payment for the work completed on March 9 . March 25 The company completed work for another client for $6,600 on credit. Kareh 29 The company paid $5,400 eash in dividends. March 30 The company purchased $900 of additional office supplies on credit. March 31 The company paid $800 cash for this month's utility bill. General Journal Tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits. Each journal entry is automatically posted to the General Ledger. General Ledger Tab - To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Abnormal balances appear in parentheses. Click on any amount to see the underlying journal entry. Trlal Balance Tab - A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. If your trial balance doesn't balance, review your joumal entries on the general journal tab. Income Statement Tab - Using the dropdown buttons, select the financial statement elements and account titles to be included on the income statement. The account balances will automatically populate. Statement of Retained Earnings Tab - Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the retained earnings balance. Bafance Sheet Tab - Using the dropdown buttons, select the financial statement elements and account titles to be included on the balance sheet. The account balances will automatically populate. Impact on Equity Tab - Using the dropdown buttons, indicate the impact each item has on total equity. Compare the total with the amount of equity reported on the balance sheet
