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E3.19 (LO 1, 3, 4), AP Selected transactions for Therow Corporation during its first month in business are presented below. Sept. 1 Issued common
E3.19 (LO 1, 3, 4), AP Selected transactions for Therow Corporation during its first month in business are presented below. Sept. 1 Issued common stock in exchange for $20,000 cash received from investors. Purchased equipment for $9,000, paying $3,000 in cash and the balance on account. Performed services on account for $18,000. 5 8 14 Paid salaries of $1,200. 25 30 Paid $4,000 cash on balance owed for equipment. Paid $500 cash dividend. Therow's chart of accounts shows Cash, Accounts Receivable, Equipment, Accounts Payable, 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 3.4. b. Journalize the transactions. Do not provide explanations. c. Post the transactions to T-accounts. Analyze transactions, prepare jour nal entries, and post transactions to T-accounts.
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