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The following events apply to Equipment Services Incorporated in its first year of operation: Acquired $60,000 cash from the issue of common stock. Received an
The following events apply to Equipment Services Incorporated in its first year of operation:
- Acquired $60,000 cash from the issue of common stock.
- Received an $8,200 cash advance for services to be provided in the future.
- Purchased $2,000 of supplies on account.
- Earned $36,000 of service revenue on account.
- Incurred $16,100 of operating expenses on account.
- Collected $28,500 cash from accounts receivable.
- Made a $15,100 payment on accounts payable.
- Paid a $2,000 cash dividend to the stockholders.
- Recognized $1,600 of supplies expense.
- Recorded $3,100 of accrued salaries expense.
- Recognized $3,100 of revenue for services provided to the customer in Event 2.
Required a. Record the events in T-accounts. b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.
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