Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me fill out the journal entries with the given information. (The red indicates which parts are incorrect). Thank you! Jane Stam opens a
Please help me fill out the journal entries with the given information. (The red indicates which parts are incorrect). Thank you!
Jane Stam opens a web consulting business called Stam 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. March 1 Stam invested $201,000 cash along with $23,700 in office equipment in the company in exchange for common stock. March 2 The company prepaid $8,000 cash for six months' rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. March 3 The company made credit purchases of office equipment for $4,700 and office supplies for $2,900. Payment is due within 10 days. March 6 The company completed services for a client and immediately received $5,700 cash. March 9 The company completed a $9,200 project for a client, who must pay within 30 days. March 12 The company paid \$7,600 cash to settle the account payable created on March 3. March 19 The company paid $7,300 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 $5,500 cash as partial payment for the work completed on March 9 . March 25 The company completed work for another client for $5,600 on credit. March 29 The company paid $5,200 cash in dividends. March 30 The company purchased $700 of additional office supplies on credit. March 31 The company paid $600 cash for this month's utility bill. 10 42 pointsStep 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