Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture, Accounts Payable, Common Stock ,
Question:
a. Lisa Oxford opened a law firm by investing $13,000 cash and office furniture valued at $8,900. Organized as a professional corporation, the business issued common stock to Oxford.
b. Paid monthly rent of $1,800.
c. Purchased office supplies on account, $1,300.
d. Paid employee salaries of $1,800.
e. Paid $900 of the accounts payable created in Transaction c.
f. Performed legal service on account, $8,700.
g. Declared and paid dividends of $2,500.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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