Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture, Accounts Payable, Common Stock, Dividends,
Question:
a. Leigh Hampton opened a law firm by investing $22,500 cash and office furniture with a fair value of $9,000. Organized as a professional corporation, the business issued common stock to Hampton.
b. Paid monthly rent of $1,600.
c. Purchased office supplies on account, $ 1,400.
d. Paid employees' salaries of $3,300.
e. Paid $850 of the account payable created in transaction c.
f. Performed legal service on account, $10,100.
g. Declared and paid dividends of $2,300.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
Question Posted: