Michael masters opens a web consulting business called masters consulting and completes the following transactions in March. Usi
ng the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
Mar 1. masters invested $231,000 cash along with &24,700 in office equipment in the company in exchange for common stock.
March 2. The company prepaid $12,000 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 $5,700 and office supplies for $3,900. Payment is due within 10 days.
March 6. The company completed services for a client and immediately received $6,700 cash.
March 9. The company completed a $10,200 project for a client, who must pay within 30 days.
March 12. The company paid $9,600 cash to settle the account payable created on March 3.
March 19. The company paid $9,300 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 $6,100 cash as partial payment for the work completed on March 9.
March 25. The company completed work for another client for $6,600 on credit.
March 29. The company paid $5,400 cash in dividends.
March 30. The company purchased $900 of additional office supplies on credit.
March 31. The company paid $800 cash for this month’s utility bill.
I need help with the income statement.
Trial balance is on the picture
Help me with the income statement
Mar 1. masters invested $231,000 cash along with &24,700 in office equipment in the company in exchange for common stock.
March 2. The company prepaid $12,000 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 $5,700 and office supplies for $3,900. Payment is due within 10 days.
March 6. The company completed services for a client and immediately received $6,700 cash.
March 9. The company completed a $10,200 project for a client, who must pay within 30 days.
March 12. The company paid $9,600 cash to settle the account payable created on March 3.
March 19. The company paid $9,300 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 $6,100 cash as partial payment for the work completed on March 9.
March 25. The company completed work for another client for $6,600 on credit.
March 29. The company paid $5,400 cash in dividends.
March 30. The company purchased $900 of additional office supplies on credit.
March 31. The company paid $800 cash for this month’s utility bill.
I need help with the income statement.
Trial balance is on the picture
Help me with the income statement
1 answer:
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<span>In triangle WXZ,
Line WY is an altitude (as shown in the attached picture)
Now, it is given that:
</span><span>If ΔYWZ ~ ΔYXW
</span>∠WXY = ∠WZY
<span>
Then, we can also conclude
</span>∠WYX = ∠WYZ = 90°....(1) (because WY is the altitude)
Now, in any triangle, the sum of all the three angles is 180.
In triangle, WXY, ∠WYX = 90° (From 1)
Therefore, WXY + XWY = 90°
Similarly, in WZY.
Hence, we conclude that XWZ is a right angle.
Line WY is an altitude (as shown in the attached picture)
Now, it is given that:
</span><span>If ΔYWZ ~ ΔYXW
</span>∠WXY = ∠WZY
<span>
Then, we can also conclude
</span>∠WYX = ∠WYZ = 90°....(1) (because WY is the altitude)
Now, in any triangle, the sum of all the three angles is 180.
In triangle, WXY, ∠WYX = 90° (From 1)
Therefore, WXY + XWY = 90°
Similarly, in WZY.
Hence, we conclude that XWZ is a right angle.