chapter 1

question 4

On August 31, the balance sheet of Whispering Winds Corp. showed Cash $10,000, Accounts Receivable $2,700, Supplies $600, Equipment $6,000. Accounts Payable $4,600, Common Stock $13,950, and Retained Earnings $750. During September, the following transactions occurred. 1. Paid $2,200 cash for accounts payable due. 2. Collected $1.650 of accounts receivable. 3. Purchased additional equipment for $2,150, paying $900 in cash and the balance on account. 4. Recognized revenue of $8,000, of which $2,950 is collected in cash and the balance is due in October. 5. Deciared and paid a $1,050 cash dividend. 6. Paid salaries $2,050, rent for September $1,150, and advertising expense $200. 7. Incurred utilities expense for month on account $260. 8. Received $12,000 from Capital Bankon a 6-month note payable. 1. 2200 2 1650 1650 3. 900 ii i 5. Liabilities Equipment Stockholders' Equity Stockholders' Equity Revenues (i) 5 1 1 1 1 1 1 1 1 0] ]