Selected transactions for Ranch Ltd during its first month in business are presented below:

Ranch Ltd’s chart of accounts shows: Cash (no. 100), Equipment (no. 120), Accounts Payable (no. 200), Share Capital (no. 300), and Dividends (no. 320). 

Required

(a) Prepare an analysis of the September transactions. The column headings should be: Cash + Equipment = Accounts Payable + Equity. For transactions affecting equity, provide explanations at the side, as shown on page 100.

(b) Journalise the transactions. Narrations are required.

(c) Post the transactions to T accounts.

Transcribed Image Text:

Sept. 1 Issued shares in exchange for $45 000 cash received from investors. 5 Purchased equipment for $25 000, paying $10000 in cash and the balance on account. Paid $7500 cash on balance owed for equipment. Paid $1000 cash dividend. 25 30