Elected transactions For Protheroe Corporation during its First month in business Are presented below. Sept. 1 Issued

Question:

Elected transactions For Protheroe Corporation during its First month in business Are presented below.

Sept. 1 Issued common stock in exchange For $20,000 cash received from investors.

5 Purchased equipment for $9,000, paying $3,000 in cash and the balance On account.

8 Performed services on account for $18,000.

14 Paid salaries of $1,200.

25 Paid $4,000 cash on balance owed For equipment.

30 Paid $500 cash dividend.

Protheroe chart of accounts shows Cash, Accounts Receivable, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, and Salaries and Wages Expense.

Instructions

(a) Prepare a tabular analysis of the September transactions. The column headings should be Cash 1 Accounts Receivable 1 Equipment 5 Accounts Payable 1 Stock holders’ Equity. For transactions affecting stockholders’ equity, provide explanations In the right margin, as shown on page 110.

(b) Journalize the transactions. Do not provide explanations.

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