Question
Wagner Excavating organized as a corporation on January 18 and engaged in the following transactions during its first two weeks of operation. Jan.18 Issued capital
Wagner Excavating organized as a corporation on January 18 and engaged in the following transactions during its first two weeks of operation.
Jan.18Issued capital stock in exchange for $400,000 cash.Jan.22Borrowed $100,000 from its bank by issuing a note payable.Jan.23Paid $200 for a radio advertisement aired on January 24.Jan.25Provided $5,000 of services to clients for cash.Jan.26Provided $18,000 of services to clients on account.Jan.31Collected $4,200 cash from clients for the services provided on January 26.
a.Record each of these transactions.
b.Determine the balance in the Cash account on January 31. Be certain to state whether the balance is debit or credit.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started