The Electronics Appliance Corporation was organized on September 1 The following transactions occurred during the month of September:

(1) The firm issues 4/000 no-par-value common shares for $12 cash per share on September 1
(2) The firm's lawyer is given 600 no-par-value common shares on September 2 in payment for legal services rendered in the organization of the corporation. The bill for the services is $7,200.
(3) A factory building is leased for the three years beginning October 1. Monthly rental payments are $5,000. Two months' rent is paid in advance on September 5.
(4) Raw materials are purchased on account for $6,100 on September 12.
(5) A cheque for S900 is received on September 15 from a customer as a deposit on a special order for equipment that Electronics plans to manufacture. The contract price is $4,800.
(6) Office equipment with a list price of $950 is acquired on September 20. After deducting a discount of $25 for prompt payment, a cheque is issued in full payment.
(7) The company hires three employees to begin work on October 1. A cash advance of $200 is given to one of the employees on September 28.
(8) Factory equipment costing $27,500 is purchased on September 30. A cheque for $5,000 is issued, and a long-term mortgage liability is assumed for the balance.
(9) The labour costs of installing the new equipment in (8) are $450 and are paid in cash on September 30.

Required:

1. Prepare journal entries for each of the nine transactions
2. Set up T accounts and post the journal entries
3. Prepare a Balance Sheet for Electronics Appliance Corporation as at Sept. 30

Answer rating: 100% (QA)

a september particulars debit credit 1 1cash ac dr 48000 to equity share capital ac400012 48000 2 2legal service expense ac dr 7200 to equity share ca... View the full answer