The Mendholm Company entered into the following transactions. a. Performed services on account, $18,500 b. Collected $7,200

Question:

The Mendholm Company entered into the following transactions.
a. Performed services on account, $18,500
b. Collected $7,200 from client related to services performed in a
c. Paid $1,500 to stockholders
d. Paid salaries of $3,500 for the current month
Required:
Show the effect of each transaction using the following model:

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...