Selected transactions for Dave Letterman Corporation during its first month in business are presented below:

Issued common stock in exchange for $15,000 cash received from investors.

Purchased equipment for $10,000, paying $5,000 in cash and the balance on account.

25 Paid $3,000 cash on balance owed for equipment.

30 Paid $500 cash dividend.

Sepia!

5 Letterman’s chart of accounts shows: Cash, Equipment, Accounts Payable, Common Stock, and Dividends.

Instructions

(a) Prepare a tabular analysis of the September transactions. The column headings should be: Cash + Equipment = Accounts Payable + Stockholders’ Equity. For transactions affecting stockholders’ equity, provide explanations in the right margin, as shown on page 103.

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

(c) Post the transactions to T accounts.