Prepare the financial statemetns On April 1, 2019, Betty Booth incorporated a consulting business known as BoothConsulting. Booth Consulting entered into the following transactions during April:Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of commonstock.1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at6% are due June 30, 2019.1. Purchased supplies, $1,400 and office equipment, $10,500 for cash.1. Paid four months' rent on a lease rental contract, $4,800.2. Paid the premium on a three-month property and casualty insurance policy,$2,100.4. Received cash from clients as an advanct payment for services to be provided andrecorded it as unearned revenue, $6,000.5. Purchased additional office equipment on account from Office Station Co.,$2,000.6. Provided consulting services on account, $4,700.10. Paid cash for an April newspaper advertisement, $120.12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200.12. Provided consulting services on account, $4,200.14. Paid part-time receptionist for two weeks' salary, $750.17. Recorded cash from cash clients for service revenue, $6,250.18. Paid cash for supplies, $900.20. Provided consulting services on account, $2,100.24. Recorded cash from cash clients for service revenue, $3,850.26. Received cash from clients on accounts, $5,600.27. Paid part-time receptionist for two weeks' salary, $750.29. Paid telephone bill for April, $330.30. Paid electricity bill for April, $250.30. Recorded cash from cash clients for service revenue, $3,250.30. Provided consulting services on account, $1,500.30. Paid Betty Booth a $5,000 Dividend.

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On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100.

On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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