Open the following T accounts: Cash; Repair Supplies; Repair Equipment; Accounts Payable; Common Stock; Dividends; Repair Fees

Question:

Open the following T accounts: Cash; Repair Supplies; Repair Equipment; Accounts Payable; Common Stock; Dividends; Repair Fees Earned; Salaries Expense; and Rent Expense. Record the following transactions for the month of June directly in the T accounts; use the letters to identify the transactions in your T accounts. Determine the balance in each account.

a. Tony Ornega opened Ornega Repair Service, Inc., by investing $4,300 in cash and $1,600 in repair equipment in return for 5,900 shares of the company’s $1 par value common stock.

b. Paid $800 for the current month’s rent.

c. Purchased repair supplies on credit, $1,100.

d. Purchased additional repair equipment for cash, $600. e. Paid salary to a helper, $900. f. Paid $400 of amount purchased on credit in c.

g. Accepted cash for repairs completed, $3,720.

h. Declared and paid a dividend of $1,000.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...