Problem: Nguyen & Company had the following account balances available:
Required:
a. Using the accounting framework above, record each of the following transactions/events:
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March 1
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Services previously sold in advance of $300 were performed.
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March 1
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Purchased equipment for $11,360; management expects it will be useful for 4 years at which time it should be worth $800.
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March 1
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Performed $4,000 of consulting services for customers; sent bill.
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March 1
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Borrowed $2,600 on a note payable.
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March 12
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Paid advertising of $640.
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March 18
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Purchased supplies of $130 on account.
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March 20
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Received $600 from customers on account.
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March 23
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Paid utility bill of $150.
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March 30
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Paid employee payrollof $1,400.
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March 30
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Supplies on hand reported at $190.
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March 30
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Insurance of $150 expired.
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b. Use the resulting accounting framework to prepare an income statement, statement of retained earnings and a balance sheet for the company for the month.