Question
Mark Jacobs established Jacobs Services in August by contributin g $ 3 0,000 cash from his personal savings to the business in exchange for 100%
Mark Jacobs established Jacobs Services in August by contributing $30,000 cash from his personal savings to the business in exchange for 100% of the common stock. Jacobs Services had the following transactions in September.
September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance.
September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance.
September 3 Paid September rent of $3,000.
September 5 Purchased $4,000 of supplies on credit.
September 8Performed serviced and received $1,000 cash.
September 10 Billed clients $8,500 for services performed.
September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November.
September 18 Collected $8,500 cash from clients toward their accounts billed on September 10.
September 24 Paid $4,000 for the supplies purchased on September 5.
September 30 Paid $100 cash for newspaper advertising to be aired in October.
September 30 Paid $5,000 September salaries.
September 30 Billed clients $6,000 for services performed.
September 30 Declared and paid cash dividends of $2,000.
Required
Record the effects of each using the financial
statement effects template.
1. Shareholders contribute $
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