Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Susan Crawford created a corporation providing legal services, Susan Crawford Inc., on July 1, 2022. On July 31 the balance sheet showed Cash $3,760, Accounts

Susan Crawford created a corporation providing legal services, Susan Crawford Inc., on July 1, 2022. On July 31 the balance sheet showed Cash $3,760, Accounts Receivable $2,350, Supplies $470, Equipment $4,700, Accounts Payable $3,948, Common Stock $5,828, and Retained Earnings $1,504. During August, the following transactions occurred. Aug. 1 4 Collected $1,034 of accounts receivable due from customers. Paid $2,538 cash for accounts payable due. 9 Performed services worth $5,076, of which $3,384 is collected in cash and the balance is due in September. 22222 15 Purchased additional office equipment for $3,760, paying $658 in cash and the balance on account. 19 Paid salaries $1,316, rent for August $658, and advertising expenses $329. 23 Paid a cash dividend of $658. 26 31 Borrowed $4,700 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $360. (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. Include margin explanations for any changes in revenues or expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Post entries in the order presented in the question.)

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

Students also viewed these Accounting questions