On 1 september 2018, two people formed the X consulting group. They engaged in the following transcriptions in the month of September. Each contributed 25,000 in cash in exchange for stock in the new company. They decided to lease office space, rather than buy a building. The lease was 3000/month. They prepaid in cash the first three months, totaling 900 when they signed the lease on 1 September 2018. They occupied the offices immediately. They purchased office equipment on September 1 for 20,000. They paid 10,000 in cash and owed the balance of 10,000 to be repaid on 1 September 20,000. They estimated that equipment would have a 10-year useful life and a 2,000-salvage value. They hired a receptionist. Salaries and benefits totaled 3,500/month. The receptionist was paid in cash at the end of each month. They began and completed three consulting assignments. They charged fees of 19,000 for these jobs. They had received cash payments of 165000 as of 31 September 2018, which the balance of 2,500 still owed to them. They were 100% certain that they would receive this payment in October. They received a 2,000 cash advance for a consulting job they would do in October. They paid themselves salaries of 4,000 each during the month, paid in cash on 31 September 2018. They hired an advertising firm to design a logo to use in advertisements. The advertising firm delivered on the contract before the end of the month and will be paid 3000 next month for their services.
Complete the following two tables
E G K. O Н AE (9/31) #2 AE (9/31) #4 #6 #7 #3 Purchased Office Equipment #5 Completed consulting assignments L M N AE (9/31) Incurred Advertisi Closing ng Entry Prepaid Office sept 1 Contrib. Capital Lease Used up Prepaid Lease Paid salary for receptionist Received Cash Advance EB Sep 31 2 WORKSHEET BB Depreciation Paid Salaries 3 Cash 4 5 Accounts Receivable 6 Prepaid Lease 7 PP&E 8 Accumulated Depreciation 9 TOTAL ASSETS 10 11 12 13 Advance from Customer 14 Advertising Payable 15 16 Long Term Loan Payable 17 23 18 Contributed Capital 19 Retained Earnings 20 Sales Revenues 21 22 Lease Expense Depreciation Expense 24 Salaries Expense 25 Advertising Exp 26 27 TOTAL LIABS & OWNERS EQUITY 28 29 30 CHECK O o Income Statement for month ending September 31, 2018 Revenues COGS Expense Gross Margin Lease Expense Depreciation Expense Salaries Expense Advertising Expense Total Operating Expenses Operating Income Interest Expense Income before Tax Tax Expense Net Income o
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