This problem can be used in conjunction with Problem 2-59A; see that problem for the relevant data.

Requirements

1. Journalize the transactions of Grueser Computing, Inc. Explanations are not required.

2. Prepare a T-account for each account. Insert in each T-account its September 30 balance as given (example: Cash $2,500). Then, post the October transactions to the T-accounts.

3. Compute the balance in each account.

Problem 2-56A

During October 2018, Grueser Computing completed these transactions:

a. The company received cash of $3,700 and issued common stock.

b. Performed services for a customer and received cash of $6,700.

c. Paid $4,700 on accounts payable.

d. Purchased supplies on account, $800.

e. Collected cash from a customer on account, $1,300.

f. Consulted on the design of a computer system and billed the customer for services rendered, $4,700.

g. Recorded the following business expenses for the month: (1) paid office rent—$1,900; (2) paid advertising—$500.

h. Declared and paid a cash dividend of $3,400.

Transcribed Image Text:

Liabilities Stockholders' Equity Assets Retained Accounts Receivable Accounts Common Stock Cash Supplies + Equipment Payable Earnings + Bal 2,500 3,250 12,200 8,300 6,300 3,350