Question #178020
Legal Services Company Ltd. was formed on July 1, 2017. During the first month of
operations, the following transactions occurred.
1. Shareholders invested $10,000,000 in cash in exchange for ordinary shares of
Legal Services Company Ltd.
2. Paid $800,000 for July rent on office space.
3. Purchased office equipment on account $3,000,000.
4. Performed legal services for clients for cash $1,500,000.
5. Borrowed $700,000 cash from a bank on a note payable.
6. Performed legal services for client on account $2,000,000.
7. Paid monthly expenses: salaries $500,000, utilities $300,000, and advertising
$100,000.
Instructions
(a) Prepare a tabular summary of the transactions.
(b) Prepare the income statement, retained earnings statement, and statement of
financial position at July 31 for Legal Services Company Ltd
Expert's answer
(a) Prepare a tabular summary of the transactions.
(b) Prepare the income statement, retained earnings statement, and statement of
financial position at July 31 for Legal Services Company Ltd
This was the simplified version otherwise in exel it looks like this
