Chapter 1 Introduction to Accounting and Business (10)

1. On October 1, founders John Paul and Dana Merino deposited $15,000 each, for a total of $30,000, in a bank account in the name of new company Pauls Appraisal Services in exchange for common stock.

2. On October 5, Pauls Appraisal Services paid $15,000 for the purchase of land as a future building site.

3. On October 10, Pauls Appraisal Services purchased supplies on account for $850.

4. On October 18, Pauls Appraisal Services received cash of $8,500 from customers for services provided.

5. On October 19, Pauls Appraisal billed customers $4,000 for appraisal services performed on account.

6. On October 19, Pauls Appraisal paid wages to its employees of $1,500.

7. On October 30, Pauls Appraisal received $4,000 from customers who were billed on October 19.

8. On October 31, Pauls Appraisal Services paid the following expenses for the month: wages, $1,500; rent, $1,000; utilities, $250; and miscellaneous, $225.

9. On October 31, Pauls Appraisal Services paid creditors on account, $650.

10. On October 31, Pauls Appraisal Services paid dividends to its shareholders of $1,000.