90.2K

Verified Solution

Link Copied!

Lamars Fortune 100 Company completed the following transactions during the month of January 2023. Mrs. SeaHawk is the owner/CFO. You are the new accountant. Mrs. SeaHawk has requested that you review the transactions from January 2023 below and then proceed as instructed.

1. Mrs. SeaHawk invested $13,000 in cash in the educational consulting company (Lamars Fortune 100 Company) from her personal account. What is the journal entry to post this to the Companys ledger?

2. The Company bought computers on account for $6,000. What is the journal entry to post this?

3. The Company paid employees salaries for $3,000. What is the journal entry to post this?

4. The Company paid $1,000 on account related to the computers in item #2 above. What is the journal entry to post this?

5. The Company billed a client on account for educational consulting services performed for $30,000. What is the journal entry to post this?

6. Mrs. SeaHawk spends most of her time leading, planning and strategic analysis. She made a comment to you in passing that the journal entry for item #5 above is a debit to cash and a credit to revenue. Is she right? Is she wrong? Address her comment and defend your position based on generally accepted accounting principles.

As Lamars accountant, prepare:

Trial balance of the transactions above as of January 31, 2023.

Income statement for the period ending January 31, 2023.

Statement of equity for the period ending January 31, 2023.

Balance sheet as of January 31, 2023.

Answer & Explanation Solved by verified expert

See Answer