Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March 1 by two former college roommates. The corporation provides computer consulting services to small businesses. The following transactions occurred during the first month of operations: March 2: Received contributions of $20,000 from each of the two principal owners of the new business in exchange for shares of stock. March 7: Signed a two-year promissory note at the bank and received cash of $15,000. Interest, along with the $15,000, will be repaid at the end of the two years. March 12: Purchased $700 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. March 19: Billed a client $4,000 for services rendered by Expert in helping to install a new computer system. The client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days. March 20: Paid $1,300 bill from the local newspaper for advertising for the month of March. March 22: Received 25% of the amount billed to the client on March 19. March 26: Received cash of $2,800 for services provided in assisting a client in selecting software for its computer. March 29: Purchased a computer system for $8,000 in cash. March 30: Paid $3,300 of salaries and wages for March. March 31: Received and paid $1,400 in gas, electric, and water bills. Required: 1. Complete the table below to summarize the preceding transactions as they affect the accounting equation. If an account is unaffected by a transaction, enter "0". Use the minus sign to indicate decreases. Ilse the format in Exhibit 3-1 Expert Consulting Services Inc. Transactions for the Month of March Assets Liabilities Date Cash Accounts Receivable Computer Supplies Accounts Payable Notes 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 Balance $ $ $ $ $ $ March 31 Liabilities Stockholders' Equity + Accounts Payable Notes Payable Capital Stock Retained Earnings $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ nu lui lo Balance #t $ $ Total Assets: Total Liabilities and Stockholders' Equity: 2. Prepare an income statement for the month of March. Expert Consulting Services Inc. Income Statement For the Month of March Revenues: Expenses: Total Expenses 3. Prepare a classified balance sheet at March 31. Expert Consulting Services Inc. Balance Sheet March 31 Assets Current assets: Total current assets Property, plant, and equipment: Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term debt: Total liabilities Total stockholders' equity Total liabilities and stockholders' equity 4. From reading the balance sheet you prepared in part (3), what events would you expect to take place in April
