The following events apply to Computer Services Inc. in its first year of operation: 1. Acquired $40,000
Question:
1. Acquired $40,000 cash from the issue of common stock.
2. Earned $28,000 of service revenue on account.
3. Incurred $15,200 of operating expenses on account.
4. Collected $26,400 cash from accounts receivable.
5. Made a $13,600 payment on accounts payable.
6. Paid a $2,000 cash dividend to the stockholders.
7. Received a $7,100 cash advance for services to be provided in the future.
8. Purchased $1,600 of supplies on account.
9. Recognized $2,400 of revenue for services provided to the customer in Event 7.
10. Recognized $1,200 of supplies expense.
11. Recorded $1,600 of accrued salaries expense.
12. Recognized $450 of accrued interest revenue.
Required
a. Record the events in T-accounts and determine the ending account balances.
b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Question Posted: