Selected transactions for Therow Corporation during its first month in business are presented below. Sept. 1 Issued

Question:

Selected transactions for Therow 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.

Therow's 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 + Accounts Receivable + Equipment = Accounts Payable + Common Stock + Revenues − Expenses − Dividends. For transactions affecting stockholders' equity, provide explanations in the right margin, as shown on Illustration 3-3 on page 99.

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

Common Stock
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