This problem is based on the transactions for the Mobility Solutions Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal
entries recorded.
Dec.
Dec. 1 On December 1, Ronnie Walsh forms a consulting business, named Mobility Solutions. Mobility Solutions receives
$74,000 cash from Ronnie Walsh in exchange for common stock.
2 Mobility Solutions pays $4,700 cash for supplies. The company's policy is to record all prepaid expenses in
asset accounts.
Dec. 3 Mobility Solutions pays $58,000 cash for equipment.
Dec. 4 Mobility Solutions purchases $10,450 of supplies on credit from a supplier, CalTech Supply.
Dec. 5 Mobility Solutions provides consulting services and immediately collects $6,400 cash.
Dec. 6 Mobility Solutions pays $3,200 cash for December rent.
Dec. 7 Mobility Solutions pays $1,700 cash for employee salary.
Dec. 8 Mobility Solutions provides consulting services of $4,900 and rents its test facilities for $3,600. The customer
is billed $8,500 for these services.
Dec. 9 Mobility Solutions receives $8,500 cash from the client billed on December 8.
Dec. 10 Mobility Solutions pays CalTech Supply $3,100 cash as partial payment for its December 4 $10,450 purchase of
supplies.
Dec. 11 Mobility Solutions pays $1,600 cash for dividends.
Dec. 12 Mobility Solutions receives $4,400 cash in advance of providing consulting services to a customer. The company's
policy is to record fees collected in advance in a balance sheet account.
Dec. 13 Mobility Solutions pays $4,600 cash (insurance premium) for a 24-month insurance policy. Coverage begins on
December 1. The company's policy is to record all prepaid expenses in a balance sheet account.
Dec. 14 Mobility Solutions pays $2,320 cash for supplies.
Dec. 15 Mobility Solutions pays $2,505 cash for December utilities expense.
Dec. 16 Mobility Solutions pays $1,800 cash in employee salary for work performed in the latter part of December.