The company had the following transactions duringSeptember.Sept. 1 – The company sold shares of...The...

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Accounting

The company had the following transactions duringSeptember.
Sept. 1 – The company sold shares of common stock for $30,000cash.
Sept. 1 – The company purchased a one-year insurance policy for$300 in cash.
Sept. 1 – The company purchased office equipment costing $8,000by signing a 6% note. The Equipment has a 5 year life and nosalvage value. The note requires monthly principal payments of $225beginning on October 1st until the balance is paid.
Sept. 10 – The company purchased $735 of office supplies forcash.
Sept. 15 – The company paid legal and registration fees toregister their trademark which is his nickname “Sanchize.” The feesincurred totaled $4,000, which were paid in cash.
Sept. 29 – The company billed customers $5,500 for consultingservices performed.
Sept. 30 – The company paid $1,450 for employee’s salary.
Sept. 30 – Since the company had a good month so Sanchezdeclared a $1,000 dividend to be paid on October 10th.
Additional Information:
On September 30th, the company took an inventory of the suppliesand found that they had $500 of supplies on hand.
Equipment purchased before the 15th of the month are depreciatedfor a whole month using the straight-line method.
On October 3rd received the September utilities bill for$188.
Required:
Journalize the transactions.
Prepare the adjusting entries.
Post all entries to the accounts.
Prepare a Single-Step Income Statement, Retained EarningsStatement and a Classified Balance Sheet for his first month ofoperations.
Prepare the closing entries.
Comment on the company’s liquidity, capital structure andfinancial flexibility and their overall financial position.
Be sure to round all your answers. Nopennies!
Check Digit for Balance Sheet:
Total Assets = $41,657
Net Income = $3,429

Answer & Explanation Solved by verified expert

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Journal entries Date Description Debit Credit 1Sep Cash 30000 Common Stock 30000 1Sep Prepaid insurance 300 Cash 300 1Sep Office Equipment 8000 6 Note Payable 8000 10Sep Office supplies 735 Cash 735 15Sep legal and registration fees 4000 Cash 4000 29Sep Accounts receivable 5500 Service revenue 5500 See Answer

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Transcribed Image Text

In: AccountingThe company had the following transactions duringSeptember.Sept. 1 – The company sold shares of...The company had the following transactions duringSeptember.Sept. 1 – The company sold shares of common stock for $30,000cash.Sept. 1 – The company purchased a one-year insurance policy for$300 in cash.Sept. 1 – The company purchased office equipment costing $8,000by signing a 6% note. The Equipment has a 5 year life and nosalvage value. The note requires monthly principal payments of $225beginning on October 1st until the balance is paid.Sept. 10 – The company purchased $735 of office supplies forcash.Sept. 15 – The company paid legal and registration fees toregister their trademark which is his nickname “Sanchize.” The feesincurred totaled $4,000, which were paid in cash.Sept. 29 – The company billed customers $5,500 for consultingservices performed.Sept. 30 – The company paid $1,450 for employee’s salary.Sept. 30 – Since the company had a good month so Sanchezdeclared a $1,000 dividend to be paid on October 10th.Additional Information:On September 30th, the company took an inventory of the suppliesand found that they had $500 of supplies on hand.Equipment purchased before the 15th of the month are depreciatedfor a whole month using the straight-line method.On October 3rd received the September utilities bill for$188.Required:Journalize the transactions.Prepare the adjusting entries.Post all entries to the accounts.Prepare a Single-Step Income Statement, Retained EarningsStatement and a Classified Balance Sheet for his first month ofoperations.Prepare the closing entries.Comment on the company’s liquidity, capital structure andfinancial flexibility and their overall financial position.Be sure to round all your answers. Nopennies!Check Digit for Balance Sheet:Total Assets = $41,657Net Income = $3,429