Prepare journal entries for each transaction and identify the financial statement impact of each entry.
The financial statements are automatically generated based on the journal entries recorded.
January 1C. Collins, owner, invested $172,750 cash in the company in exchange for common stock.January 2The company purchased supplies for $3,650 cash.January 3The company purchased $10,050 of equipment on credit.January 4The company received $20,300 cash for services provided to a customer.January 5The company paid $10,050 cash to settle the payable for the equipment purchased on January 3.January 6The company billed a customer $5,100 for services provided.January 7The company paid $3,625 cash for the monthly rent.January 8The company collected $2,925 cash as partial payment for the account receivable created on January 6.January 9The company paid $13,700 cash in dividends to the owner (sole shareholder).

ReferencesWorksheetDifficulty: 3 HardLearning Objective: 02-A1 Analyze and record transactions and their impact on financial statements.
© 2021 McGraw-Hill Education. All rights reserved.