Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Issued common stock for $5,000 cash. 2. Borrowed $4,000 cash from a local bank. 3. Purchased $500 of supplies on account. 4. Recognized revenue

image text in transcribed
1. Issued common stock for $5,000 cash. 2. Borrowed $4,000 cash from a local bank. 3. Purchased $500 of supplies on account. 4. Recognized revenue of $8,000 for services provided on account. 5. Paid $3,900 cash for salaries expense. 6. Paid $2,400 cash in advance for a one-year lease to rent office space. 7. Purchased $3,500 of office furniture on account. 8. Received $1,800 cash for services to be performed in the future. 9. Collected $3,000 cash from accounts receivable. 10. Paid $1,200 cash for utilities. 11. Paid dividends of $1,000 cash to the stockholders. 12. Repaid $1,600 of the bank loan described in Event No. 2. 13. Purchased land for $2,700 cash. 14. Recognized $400 of accrued interest expense. 15. Completed $1,800 of services on contract described in Event No. 8. 16. Counted supplies on hand at the end of the accounting period. Determined that $400 of supplies were used during the accounting period. 17. Recognized accrued salary expense of $2,300. 18. Recognized $150 of accrued interest revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions