Question: The following events apply to Pearson Service Co for 2014

The following events apply to Pearson Service Co. for 2014, its first year of operation.
1. Received cash of $50,000 from the issue of common stock.
2. Performed $90,000 worth of services on account.
3. Paid $64,000 cash for salaries expense.
4. Purchased supplies for $12,000 on account.
5. Collected $78,000 of accounts receivable.
6. Paid $8,500 of the accounts payable.
7. Paid a $5,000 dividend to the stockholders.
8. Had $1,500 of supplies on hand at the end of the period.

a. Record these events in general journal form.
b. Post the entries to T-accounts and determine the ending balance in each account.
c. Determine the amount of total assets at the end of 2014.
d. Determine the amount of net income for 2014.

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  • CreatedMay 22, 2014
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