Transaction Analysis and Financial Statements Dynamic Services Inc was organized on March 1 by two former college roommates The corporation will provide computer tax services to small businesses The following transactions occurred during the first month of operations March 2 Received contributions of $10,000 from each of the two principal owners in exchange for shares of stock March 7 Signed a two year promissory note at the bank and received cash of $7,500 Interest, along with the $7,500, will be repaid at the end of the two years March 12 Purchased miscellaneous supplies on account for $350, payment due in 30 days March 19 Billed a client $2,000 for tax preparation services According to an agreement between the two companies, the client is to pay 25 of the bill upon its receipt and the remaining balance within 30 days March 20 Paid a $650 bill from the local newspaper for advertising for the month of March March 22 Received 25 of the amount billed the client on March 19 March 26 Received cash of $1,400 for services provided in assisting a client in preparing its tax return March 29 Purchased a computer system for $4,000 in cash March 30 Paid $1,650 in salaries and wages for March March 31 Received and paid $700 of gas, electric, and water bills Required 1 Complete the table below to summarize the preceding transactions as they affect the accounting equation Use the format in Exhibit 3 1 Identify each transaction with the date Ignore depreciation expense and interest expense If an account is unaffected by a transaction, enter 0 Use the minus sign to indicate decreases 2 Prepare an income statement for the month of March 3 Prepare a classified balance sheet at March 31 Dynamic Serices Inc Transactions for the Month of March Assets Liabilities Stockholders' Equity Cash Date March 2 March 7 Balance March 12 Balance March 19 Balance March 20 Balance March 22 Balance March 26 Balance March 29 Balance March 30 Accounts Receivable Computer Supplies Accounts Payable Notes Payable Capital Stock Retained Earnings

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Transaction Analysis and Financial Statements Dynamic Services Inc. was organized on March 1 by two former college roommates. The corporation will provide computer tax services

Transaction Analysis and Financial Statements

Dynamic Services Inc. was organized on March 1 by two former college roommates. The corporation will provide computer tax services to small businesses. The following transactions occurred during the first month of operations:

March 2:	Received contributions of $10,000 from each of the two principal owners in exchange for shares of stock.
March 7:	Signed a two-year promissory note at the bank and received cash of $7,500. Interest, along with the $7,500, will be repaid at the end of the two years.
March 12:	Purchased miscellaneous supplies on account for $350, payment due in 30 days.
March 19:	Billed a client $2,000 for tax preparation services. According to an agreement between the two companies, the client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days.
March 20:	Paid a $650 bill from the local newspaper for advertising for the month of March.
March 22:	Received 25% of the amount billed the client on March 19.
March 26:	Received cash of $1,400 for services provided in assisting a client in preparing its tax return.
March 29	Purchased a computer system for $4,000 in cash.
March 30	Paid $1,650 in salaries and wages for March.
March 31	Received and paid $700 of gas, electric, and water bills.

Required:

1. Complete the table below to summarize the preceding transactions as they affect the accounting equation. Use the format in Exhibit 3-1. Identify each transaction with the date. Ignore depreciation expense and interest expense. If an account is unaffected by a transaction, enter "0". Use the minus sign to indicate decreases.

image text in transcribed 2. Prepare an income statement for the month of March.?

image text in transcribed

3. Prepare a classified balance sheet at March 31.?

image text in transcribed

Dynamic Serices Inc. Transactions for the Month of March Assets Liabilities Stockholders' Equity Cash Date March 2 March 7 Balance March 12 Balance March 19 Balance March 20 Balance March 22 Balance March 26 Balance March 29 Balance March 30 Accounts Receivable Computer Supplies Accounts Payable Notes Payable Capital Stock Retained Earnings