The following events apply to Colton Training Co. for Year 1, its first year of operation: 1.
Question:
The following events apply to Colton Training Co. for Year 1, its first year of operation:
1. Received cash of $60,000 from the issue of common stock.
2. Performed $100,000 worth of services on account.
3. Paid $74,000 cash for salaries expense.
4. Purchased supplies for $13,000 on account.
5. Collected $79,000 of accounts receivable.
6. Paid $9,500 of the accounts payable.
7. Paid a $6,000 dividend to the stockholders.
8. Had $2,500 of supplies on hand at the end of the period.
Required
a. Record these events in general journal form.
b. Post the entries to T-accounts and determine the ending balance in each account.
c. Determine the amount of total assets at the end of Year 1.
d. Determine the amount of net income for Year 1.
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...
Step by Step Answer:
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds