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E3-14 Selected transactions for Therow Corporation during its first month in business are presented below. Sept. Issued common stock in exchange for $20,000 cash received
E3-14 Selected transactions for Therow Corporation during its first month in business are presented below. Sept. Issued common stock in exchange for $20,000 cash received from investors. 5 Purchased equipment for $9,000, paying $3,000 in cash and the balance on account. Performed services on account for $18,000. 8 14 25 30 Paid salaries of $1,200. Paid $4,000 cash on balance owed for equipment. Paid $500 cash dividend. Therows chart of accounts shows Cash, Accounts Receivable, Equipment, Accounts Pay- able, Common Stock, Dividends, Service Revenue, and Salaries and Wages Expense. Instructions (a) Prepare a tabular analysis of the September transactions. The column headings should be Cash + Accounts Receivable + Equipment = Accounts Payable + Common Stock Revenues Expenses Dividends. For transactions affecting stockholders' equity, provide explanations in the right margin, as shown on Illustration 3-3 on page 99. b) Journalize the transactions. Do not provide explanations (c) Post the transactions to T-accounts
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