Question 1 (14 points) 3 Mathison Accounting Services Inc. opened on September 1, 2019. The following events and transactions occurred during its first month: 6 9 2 Sept 1 - Issued 12,500 common shares in exchange for $50,000 cash, and office equipment valued at $20,000. Sept 2 - Purchased a business condo for $150,000 by making a $10,000 down payment and taking out a mortgage for the balance. Sept 2 - Hired a secretary-receptionist at a monthly salary of $2,500. Sept 4 - Purchased $250 of office supplies on account. Sept 6 - Completed an accounting contract for their first customer and invoiced them $2,000 for services provided. Sept 15 - Completed another accounting contract and received $5,000 in payment. Sept 17 - Collected the full amount owing from the September 6 transaction. Sept 20 - Received a $750 cash advance from a client to audit their financial statements in October Sept 25 - Paid half the amount owing on the office supplies purchased on September 4. Sept 28 - Paid $1,200 for a one-year insurance policy with coverage beginning next month. Sept 29 - Declared and paid a cash dividend of $2,500 to the shareholders. Sept 30 - Made a payment to the bank of $420 for interest on the mortgage and $800 to pay the balance due on the mortgage. Sept 30 - Paid $2,200 in wages to the secretary-receptionist. Question 1 (14 points) 3 Mathison Accounting Services Inc. opened on September 1, 2019. The following events and transactions occurred during its first month: 6 9 2 Sept 1 - Issued 12,500 common shares in exchange for $50,000 cash, and office equipment valued at $20,000. Sept 2 - Purchased a business condo for $150,000 by making a $10,000 down payment and taking out a mortgage for the balance. Sept 2 - Hired a secretary-receptionist at a monthly salary of $2,500. Sept 4 - Purchased $250 of office supplies on account. Sept 6 - Completed an accounting contract for their first customer and invoiced them $2,000 for services provided. Sept 15 - Completed another accounting contract and received $5,000 in payment. Sept 17 - Collected the full amount owing from the September 6 transaction. Sept 20 - Received a $750 cash advance from a client to audit their financial statements in October Sept 25 - Paid half the amount owing on the office supplies purchased on September 4. Sept 28 - Paid $1,200 for a one-year insurance policy with coverage beginning next month. Sept 29 - Declared and paid a cash dividend of $2,500 to the shareholders. Sept 30 - Made a payment to the bank of $420 for interest on the mortgage and $800 to pay the balance due on the mortgage. Sept 30 - Paid $2,200 in wages to the secretary-receptionist
