Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please HELP, i will rate :) This problem is based on the transactions for the Kind Matters Company in your text. Prepare journal entries for
please HELP, i will rate :)
This problem is based on the transactions for the Kind Matters Company in your text. Prepare journal entries for each transaction and dentify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. December 1 On December 1, Jim Kennedy formb a consulting business, named Kind Matters. Kind Matters receives s42, 000 cash from Jin Kennedy in exchange for common stock. December 2 Kind Matters pays $3,100 cash for supplies. The conpany's policy is to record all prepaid expenses in asset accounts. December 3 Kind Matters pays $38,000 cash for equipnent. December 4 Kind Matters purchases $8,050 ot supplies on credit from a supplier, CalTech supply. Decenber 5 Kind Matters provides consulting servioes and imediately collecta $4,800 cash. December 6 kind Matters pays $1,600 eash for Decenber rent. Decesber 7 Kind Matters pays $1,300 cash for employee salary. December 8 Kind Matters provides consulting setvices of $2,200 and rents its test facilities for $900. The custoner in billed $3,100 for these services. December 9 Kind Matters receives $3,100 cash from the olient billed on December 8 . December 10 Kind Matters pays CalTeeh Supply $1,500 cash an partial payment for its December 4 \$8, 050 purchase of supplies. December 11 Kind Matters pays $800 cash for dividends. December 12 Kind Matters receives $3,600 cash in advance of providing consulting services to a custoner. The conpany"s policy is to record fees collected in advance in a balance sheet account. December 13 Kind Matters pays $3,000 cash (insurance preniun) for a 24-month insurance policy. Coverage begins on December. 1. The company's policy is to record all prepaid expenses in a balance sheet account. December 14 Kind Matters pays $720 canh for supplies. December 15 Kind Matters pays $905 cash for Decenber utilties expense. December 16 Kind Matters pays 51,000 cash in employee salary for work perforined in the latter part of December. The financial statements report the cumulative impact of all transactions recorded as of the financial statement date. Input the The financial statements report the cumulative impact of all transactions recorded as of the financial statement date. Input the cumulative amount of a) Net Income (Loss), b) Total Assets, c) Total Liabilities, and d) Total Equity that would be reported on the financial statements immediately after each transaction is recorded. (Hint: You can check your answers by selecting the date on the trial balance tab.) The first 3 transactions are completed for you Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started