Question
The following events apply to Pearson Service Co. for Year 1, its first year of operation: Received cash of $68,000 from the issue of common
The following events apply to Pearson Service Co. for Year 1, its first year of operation:
Received cash of $68,000 from the issue of common stock.
Performed $135,000 worth of services on account.
Paid $91,000 cash for salaries expense.
Purchased supplies for $21,000 on account.
Collected $105,000 of accounts receivable.
Paid $15,700 of the accounts payable.
Paid a $6,800 dividend to the stockholders.
Had $2,400 of supplies on hand at the end of the period.
Required
Post the entries to T-accounts and determine the ending balance in each account.
Post the entries to T-accounts and determine the ending balance in each account.
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