Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 18 pts Brewster Company is a newly organized company that purchased an existing business. Listed below are events from its first month in

image text in transcribed

Question 4 18 pts Brewster Company is a newly organized company that purchased an existing business. Listed below are events from its first month in business. For each event, identify the accounts that should be used to record the economic event. You should enter the numbers that correspond to the accounts that should be used, with a comma and space separating each number (e.g., 9, 10). Your answer will be evaluated based on whether you have included every account that is needed and whether you have incorrectly included any account that is not needed. An account can be used in analyzing more than one event. Accounts: 1. accounts payable 2. accounts receivable 3. cash 4.common stock 5. equipment 6. interest payable 7. land 8. notes payable 9. retained earnings - dividends 10. retained earnings - interest expense 11. retained earnings - operating expense 12. retained earnings - sales 13. salaries payable Event A: Investors contributed cash of $230,000 and were issued shares of stock. Which accounts should be used? Event B: Brewster purchased equipment for $50,000, paying cash. Which accounts should be used? Event C Brewster signed a note and borrowed $25,000. Which accounts should be used? Event D: Brewster recorded sales of $52.000, of which $30,000 were for cash and the remainder were credit sales. Which accounts should be used? Event E. Brewster paid operating expenses of $21,000 in cash. Which accounts should be used? Event F: Brewster paid a small dividend of $3,000 shareholders. Which accounts should be used

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

b. Why were these values considered important?

Answered: 1 week ago