Question: Selected transactions for Marigold Corp. during its first month in business are presented below. Sept. 1 Issued common stock in exchange for $18,200 cash received
Selected transactions for Marigold Corp. during its first month in business are presented below.
| Sept. 1 | Issued common stock in exchange for $18,200 cash received from investors. | |
| 5 | Purchased equipment for $9,270, paying $2,810 in cash and the balance on account. | |
| 8 | Performed services on account for $18,700. | |
| 14 | Paid salaries of $1,900. | |
| 25 | Paid $2,650 cash on balance owed for equipment. | |
| 30 | Paid $720 cash dividend. |
- Complete a tabular analysis of the September transactions. For transactions affecting stockholders equity, provide explanations in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for example.)
| Assets | = | Liabilities | + | Stockholders Equity | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Retained Earnings | ||||||||||||||||||
| Cash | + | Accounts Receivable | + | Equipment | = | Accounts Payable | + | Common Stock | + | Revenues | Expenses | Dividends | ||||||
| Sept. 1 | select an explanation for changes to stockholders equity Rent Expense Service Revenue Salaries and Wages Expense Dividends Issued Stock | |||||||||||||||||
| Sept. 5 | select an explanation for changes to stockholders equity | |||||||||||||||||
| Sept. 8 | select an explanation for changes to stockholders equity | |||||||||||||||||
| Sept. 14 | select an explanation for changes to stockholders equity
| |||||||||||||||||
| Sept. 25 | select an explanation for changes to stockholders equity
| |||||||||||||||||
| Sept. 30 | select an explanation for changes to stockholders equity
| |||||||||||||||||
| $enter a balance amount | $enter a balance amount | $enter a balance amount | = | $enter a balance amount | $enter a balance amount | $enter a balance amount | $enter a balance amount | $enter a balance amount | ||||||||||
- Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
- Post the transactions to T-accounts. (Post entries in the order of information presented in the question.)
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