Palmer Consulting Company

Carson Palmer established Palmer Consulting Company on February1, 2019, since he retired from the NFL after 15 seasons. He decidedit might be time to put his USC degree to use.

The company had the following transactions duringFebruary.

1. Feb. 1 – The Company sold shares of common stock for $30,000cash.
2. Feb. 1 – The Company purchased a one-year insurance policy for$300 in cash.
3. Feb. 1 – The Company purchased office equipment costing $8,000by signing a 6% note due in two years. The Equipment has a 5 yearlife and no salvage value. The note requires monthly payments of$225 beginning on March 1^stuntil the balance ispaid.
4. Feb. 10 – The Company purchased $735 of office supplies forcash.
5. Feb. 15 – The Company paid legal and registration fees toregister their trademark. The fees incurred totaled $4,000, whichwere paid in cash.
6. Feb. 28 – The Company billed customers $5,500 for consultingservices performed.
7. Feb. 28 – The Company paid $1,450 for employee’s salary.
8. Feb. 28 – Since the company had a good month Carson declared a$1,000 dividend to be paid on March 10th.

Additional Information:

1. On February 28^th, the company took an inventory ofthe supplies and found that they had $500 of supplies on hand.
2. Buildings and Equipment purchased before the 15^thofthe month are depreciated for a whole month using the straight-linemethod.
3. On March 3^rdreceived the February utilities bill for$188.

Required:  

1. Journalize the transactions.
2. Prepare the adjusting entries.
3. Post all entries to the accounts.
4. Prepare a Single-Step Income Statement, Retained EarningsStatement and a Classified Balance Sheet for his first month ofoperations. Discuss the company’s profitability, liquidity andsolvency.
5. Prepare the closing entries.

Be sure to round all your answers.  Nopennies!

Check Digit for Balance Sheet:

Total Assets = $41,657

Net Income = $3,429