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PROBLEM 0 8 - ACCOUNTING CYCLE The Electronics Appliance Corporation was organized on September 1 The following transactions occurred during the month of September: (
PROBLEM ACCOUNTING CYCLE
The Electronics Appliance Corporation was organized on September The following
transactions occurred during the month of September:
The firm issues noparvalue common shares for $ cash per share on
September
The firm's lawyer is given noparvalue common shares on September in
payment for legal services rendered in the organization of the corporation. The bill
for the services is $
A factory building is leased for the three years beginning October Monthly rental
payments are $ Two months' rent is paid in advance on September
Raw materials are purchased on account for $ on September
A cheque for is received on September from a customer as a deposit on a
special order for equipment that Electronics plans to manufacture. The contract price
is $
Office equipment with a list price of $ is acquired on September After
deducting a discount of $ for prompt payment, a cheque is issued in full payment.
The company hires three employees to begin work on October A cash advance of
$ is given to one of the employees on September
Factory equipment costing $ is purchased on September A cheque for
$ is issued, and a longterm mortgage liability is assumed for the balance.
The labour costs of installing the new equipment in are $ and are paid in cash
on September
Required:
a Prepare journal entries for each of the nine transactions
b Set up T accounts and post the journal entries
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