The following events apply to Montgomery Company for Year 1, its first year of operation: 1....

 

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The following events apply to Montgomery Company for Year 1, its first year of operation: 1. Received cash of $34,000 from the issue of common stock. 2. Performed $53,000 of services on account. 3. Incurred $7,500 of other operating expenses on account. 4. Paid $26,000 cash for salaries expense. 5. Collected $37,000 of accounts receivable. 6. Paid a $3,500 dividend to the stockholders. 7. Performed $10,000 of services for cash. 8. Paid $6,000 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c. & d. Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1. Req C and D Post the entries to T-accounts and determine the ending balance in each account. Cash Req A Beginning Balance Ending Balance Req B Debit Ending Balance Beginning Balance Debit Accounts Payable Credit Credit Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance- Accounts Receivable Common Stock Credit Credit Debit Beginning Balance Ending Balance. Ending Balance Debit Beginning Balance Dividends Salaries Expense Credit Credit Debit Beginning Balance Ending Balance Ending Balance Debit Beginning Balance Service Revenue Other Operating Expense Credit Credit Req A Req B Req C and D Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1. c. Total assets d. Net income The following events apply to Montgomery Company for Year 1, its first year of operation: 1. Received cash of $34,000 from the issue of common stock. 2. Performed $53,000 of services on account. 3. Incurred $7,500 of other operating expenses on account. 4. Paid $26,000 cash for salaries expense. 5. Collected $37,000 of accounts receivable. 6. Paid a $3,500 dividend to the stockholders. 7. Performed $10,000 of services for cash. 8. Paid $6,000 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c. & d. Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1. Req C and D Post the entries to T-accounts and determine the ending balance in each account. Cash Req A Beginning Balance Ending Balance Req B Debit Ending Balance Beginning Balance Debit Accounts Payable Credit Credit Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance- Accounts Receivable Common Stock Credit Credit Debit Beginning Balance Ending Balance. Ending Balance Debit Beginning Balance Dividends Salaries Expense Credit Credit Debit Beginning Balance Ending Balance Ending Balance Debit Beginning Balance Service Revenue Other Operating Expense Credit Credit Req A Req B Req C and D Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1. c. Total assets d. Net income

Answer rating: 100% (QA)

Requirement A Record Transactions in General Journal Form Date Account Debit Credit Cash 34000 Commo... View the full answer