Larry Matt Completed These Transactions During December of the Current

question 130

Essay

Larry Matt completed these transactions during December of the current year:
$\begin{array} { | l | l | } \hline \text { Dec. 1 } & \begin{array} { l } \text { Began a financial services practice by investing } \$ 15,000 \text { cash and office } \\\text { equipment having a } \$ 5,000 \text { value. }\end{array} \\\hline 2 & \text { Purchased } \$ 1,200 \text { of office equipment on credit. } \\\hline 3 & \text { Purchased } \$ 300 \text { of office supplies on credit. } \\\hline\end{array}$
$\begin{array}{|l|l|}\hline 4 & \begin{array}{l}\text { Completed work for a client and immediately received a payment of } \$ 900 \\\text { cash. }\end{array} \\\hline 8 & \text { Completed work for Precept Paper Co. on credit, } \$ 1,700 . \\\hline 10 & \text { Paid for the supplies purchased on credit on December } 3 . \\\hline 14 & \text { Paid for the annual } \$ 960 \text { premium on an insurance policy. } \\\hline 18 & \begin{array}{l}\text { Received payment in full from Precept Paper Co. for the work completed on } \\\text { December } 8 .\end{array} \\\hline 27 & \text { Larry withdrew } \$ 650 \text { cash from the practice to pay personal expenses. } \\\hline 30 & \text { Paid } \$ 175 \text { cash for the December utility bills. } \\\hline 30 & \text { Received } \$ 2,000 \text { from a client for financial services to be rendered next year. } \\\hline\end{array}$
Prepare general journal entries to record these transactions.

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Definitions:

Customer Cost Analysis

A method of evaluating the costs associated with acquiring and servicing a customer, compared to the revenue generated from the customer, to determine profitability.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products and services based on the time resources are used to produce them, taking into account both variable and fixed costs.

Customer Cost Analysis

The process of determining the total cost associated with serving a customer, including both direct and indirect expenses.

Capacity Analysis

Assessing the required production capability an organization needs to keep up with altering product demands.