Open the following T accounts: Cash; Repair Supplies; Repair Equipment; Accounts Payable; Common Stock; Dividends; Repair Fees

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Open the following T accounts: Cash; Repair Supplies; Repair Equipment; Accounts Payable; Common Stock; Dividends; Repair Fees Earned; Salaries Expense; and Rent Expense. Record the following transactions for the month of June directly in the T accounts; use the letters to identify the transactions in your T accounts. Determine the balance in each account.
a. Collin Ferdinand opened Ferdinand Repair Service, Inc., by investing $8,600 in cash and $3,200 in repair equipment in return for 11,800 shares of the company's $1 par value common stock.
b. Paid $800 for the current month's rent.
c. Purchased repair supplies on credit, $1,000.
d. Purchased additional repair equipment for cash, $600.
e. Paid salary to an employee, $900.
f. Paid $400 of amount purchased on credit in c.
g. Accepted cash for repairs completed, $3,720.
h. Declared and paid a dividend of $600.
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...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Financial and Managerial Accounting

ISBN: 978-1133940593

10th edition

Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson

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