(Solved by Humans)-Problem 3-3 Transaction Analysis and Financial Statements Expert Consulting Services Inc. was...

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Problem 3-3  Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March 1 by two former college roommates. The corporation provides computer consulting services to small businesses. The following trans- actions occurred during the first month of operations: March 2:         Received contributions of $20,000 from each of the two principal owners of the new business in exchange for shares of stock. March 7:         Signed a two-year promissory note at the bank and received cash of $15,000. Interest, along with the $15,000, will be repaid at the end of the two years. March 12:       Purchased $700 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. March 19:       Billed a client $4,000 for services rendered by Expert in helping to install a new computer system. The client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days. March 20:       Paid $1,300 bill from the local newspaper for advertising for the month of March. March 22:    Received 25% of the amount billed to the client on March 19. March 26:       Received cash of $2,800 for services provided in assisting a client in selecting software for its computer. March 29:       Purchased a computer system for $8,000 in cash. March 30:        Paid $3,300 of salaries and wages for March. March 31:       Received and paid $1,400 in gas, electric, and water bills. (Continued )         Required 1.        Prepare a table to summarize the preceding transactions as they affect the accounting equa- tion. Use the format in Exhibit 3-1. Identify each transaction with the date. 2.        Prepare an income statement for the month of March. 3.        Prepare a classified balance sheet at March 31. 4.        From reading the balance sheet you prepared in part (3), what events would you expect to take place in April? Explain your answer.