Jackson Enterprises Is a New Company Organized as a Sole

question 149

Essay

Jackson Enterprises is a new company organized as a sole proprietorship.The following transactions occurred during the first month of business.
a)Received $15,000 cash from the owner,Marjorie Johnson,in exchange for capital.
b)Paid the first month's rent with $800 cash.
c)Purchased equipment by paying $4,000 cash and executing a note payable for $4,000.
d)Purchased office supplies for $200 cash.The supplies remain at the end of the month.
e)Billed clients for a total of $7,000 for design services rendered.
f)Received $1,000 cash from clients for services rendered above.
Required:
1.Prepare journal entries and post the journal entries to T-accounts.
2.Prepare a trial balance at the end of the first month using the above transactions.

Calculate cash flows from operating activities using given financial data and adjustments.

Identify and categorize cash flows from investing and financing activities correctly.

Distinguish between operating, investing, and financing activities in a cash flow statement.

Calculate and report the effects of changes in balance sheet accounts on cash flows.

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Definitions:

Reference Group

A group that individuals compare themselves to for the purpose of evaluating their own behaviors, attitudes, and beliefs.

High School Classmates

Individuals who attended or are attending the same high school during the same years, sharing a part of their educational journey and experiences.

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A significant advancement or raise in position, often within a professional setting, accompanied by increased responsibilities and benefits.

Solomon Asch Experiment

A series of psychological experiments conducted in the 1950s by Solomon Asch, demonstrating the power of conformity in groups.