Data for the Wong Computer Corporation were presented in E3-2. E3-2 Wong Computer Corporation entered into these
Question:
Data for the Wong Computer Corporation were presented in E3-2.
E3-2
Wong Computer Corporation entered into these transactions during the month of May:
1. Purchased computers on account for $8,000 from Dell.
2. Paid $1,600 for rent for the month of May.
3. Provided computer services for $3,800 on account.
4. Paid Ontario Hydro $300 cash for utilities used in May.
5. Issued common shares to Li Wong in exchange for an additional $20,000 investment in the business.
6. Paid Dell for computers purchased in transaction 1.
7. Purchased a one-year accident insurance policy for $500 cash.
8. Received $3,000 cash in partial payment of the account in transaction 3.
9. Paid Li Wong a $500 dividend.
10. Paid income tax of $250 for the month.
Instructions
Journalize the transactions.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine