Palmer Consulting Company

Carson Palmer established Palmer Consulting Company on February 1, 2019, since he retired from the NFL after 15 seasons. He decided it might be time to put his USC degree to use.

The company had the following transactions during February.

a)Feb. 1 - The Company sold shares of common stock for $30,000 cash.

b)Feb. 1 - The Company purchased a one-year insurance policy for $300 in cash.

c)Feb. 1 - The Company purchased office equipment costing $8,000 by signing a 6% note due in two years. The Equipment has a 5 year life and no salvage value. The note requires monthly payments of $225 beginning on March 1^st until the balance is paid.

d)Feb. 10 - The Company purchased $735 of office supplies for cash.

e)Feb. 15 - The Company paid legal and registration fees to register their trademark. The fees incurred totaled $4,000, which were paid in cash.

f)Feb. 28 - The Company billed customers $5,500 for consulting services performed.

g)Feb. 28 - The Company paid $1,450 for employee's salary.

h)Feb. 28 - Since the company had a good month Carson declared a $1,000 dividend to be paid on March 10th.

Additional Information:

i)On February 28^th, the company took an inventory of the supplies and found that they had $500 of supplies on hand.

ii)Buildings and Equipment purchased before the 15^th of the month are depreciated for a whole month using the straight-line method.

iii)On March 3^rd received the February utilities bill for $188.

Required:

a.Journalize the transactions.

b.Prepare the adjusting entries.

c.Post all entries to the accounts.

d.Prepare a Single-Step Income Statement, Retained Earnings Statement and a Classified Balance Sheet for his first month of operations. Discuss the company's profitability, liquidity and solvency.

e.Prepare the closing entries.

Be sure to round all your answers.No pennies!

Check Digit for Balance Sheet:

Total Assets = $41,657

Net Income = $3,429