TranscribedText: Entry Date Description (Account/Explanation) Debit Credit 1 Stacy buys common stock in her newly formed corporation for 9,000 and the 12/1/2023 corporation opens up a bank account. Cash 9,000 Common Stock 9,000 2 The corporation buys o computer on account for 53,600 to use in the business. The 12/1/2023 |computer is expected to last for three years before it is replaced. Equipment 3,600 Account Payable 3,600 3 12/1/2023 |The company pays $120 for internet access for the month of December. Internet Expense 120 Cash 120 a4 12/31/2023 |Stacy Media uses PayPal to bill for consulting services. The customers paid 54,500 for consulting services provided during December. PayPal charged fees of 5135 so the corporation received 54,365. Customers were billed for all services provided. Cash 4,500 Paypal Fee Expense 135 Service Revenue 4,365 5 12/31/2023 |The company sent a check for $1,200 to pay 1/3 of the amount owed for the computer purchase. Accounts Payable 1,200 Cash 1,200 6 12/31/2023 |The company recorded 5100 of depreciation expense for the month of December. (53,600 / 36 months = 5100 per month.) Depreciation Expense 100 Accumulated Depreciation 100 7 12/31/2023 |The company paid a dividend to Stacy the shareholder of 5300. The dividend directly reduced retained earnings and did not appear on the income statement. Dividends 300 Cash 300 Totals 18,955 18,685 T Accounts Worksheet (General Ledger Equivalent) Asset Accounts Liability Accounts Equity Accounts Revenue Accounts Expense Accounts Cash Accounts Payable Common Stock Consulting Fee Revenue Internet Expense Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 1 9,000 | 3 120 5 1,200 | 2 3,600 1 9,000 4 4,365 3 120 4 4500 | 5 1,200 7 300 11,880 | Retained Earnings - Beginning of Year Debit 2 3,600 Credit Equipment Debit Credit Debit Credit Debit 135 Credit PayPal Fees Expense Debit Credit Accumulated Depreciation Debit 6 Credit 100 Debit 7 300 Credit Debit Depreciation Expense 6 100 Credit Assets (debits) Liabilities (credits) Cash 11,880 Accounts payable 1,200 Equipment 3,600 Accumulated Depreciation (100) Total Liabilities 1,200 Equity (credits) Common Stock 9,000 Retained Earnings 3,710 Total Equity 12,710 Total Assets 15,380 Total Liabilities & Equity 13,910 Income Statement for the Month Ended December 31, 2023 Revenue/Income (credits) Consulting Fee Revenue 4,365 Retained Earnings Detail Total Revenue 4,365 Beginning of Year Net Income 4,010 Expenses (debits) Dividends Paid (300) Internet Expense 120 Total Retained Earnings 3,710 PayPal Fees Expense 135 Depreciation Expense 100 Total Expenses 355 Net Income 4,010

Transcribed Image Text:

Entry Date 1 2 Description (Account/Explanation) Debit Credit Stacy buys common stock in her newly formed corporation for $9,000 and the 12/1/2023 corporation opens up a bank account. Cash 9,000 Common Stock 9,000 The corporation buys a computer on account for $3,600 to use in the business. The 12/1/2023 computer is expected to last for three years before it is replaced. Equipment 3,600 Account Payable 3,600 3 12/1/2023 The company pays $120 for internet access for the month of December. Internet Expense 120 Cash 120 4 5 6 7 12/31/2023 Stacy Media uses PayPal to bill for consulting services. The customers paid $4,500 for consulting services provided during December. PayPal charged fees of $135 so the corporation received $4,365. Customers were billed for all services provided. Cash Paypal Fee Expense Service Revenue 4,500 135 4,365 12/31/2023 The company sent a check for $1,200 to pay 1/3 of the amount owed for the computer purchase. Accounts Payable Cash 1,200 1,200 12/31/2023 The company recorded $100 of depreciation expense for the month of December. ($3,600/36 months = $100 per month.) Depreciation Expense 100 Accumulated Depreciation 100 12/31/2023 The company paid a dividend to Stacy the shareholder of $300. The dividend directly reduced retained earnings and did not appear on the income statement. Dividends Cash 300 300 Totals 18,955 18,685 Entry Date 1 2 Description (Account/Explanation) Debit Credit Stacy buys common stock in her newly formed corporation for $9,000 and the 12/1/2023 corporation opens up a bank account. Cash 9,000 Common Stock 9,000 The corporation buys a computer on account for $3,600 to use in the business. The 12/1/2023 computer is expected to last for three years before it is replaced. Equipment 3,600 Account Payable 3,600 3 12/1/2023 The company pays $120 for internet access for the month of December. Internet Expense 120 Cash 120 4 5 6 7 12/31/2023 Stacy Media uses PayPal to bill for consulting services. The customers paid $4,500 for consulting services provided during December. PayPal charged fees of $135 so the corporation received $4,365. Customers were billed for all services provided. Cash Paypal Fee Expense Service Revenue 4,500 135 4,365 12/31/2023 The company sent a check for $1,200 to pay 1/3 of the amount owed for the computer purchase. Accounts Payable Cash 1,200 1,200 12/31/2023 The company recorded $100 of depreciation expense for the month of December. ($3,600/36 months = $100 per month.) Depreciation Expense 100 Accumulated Depreciation 100 12/31/2023 The company paid a dividend to Stacy the shareholder of $300. The dividend directly reduced retained earnings and did not appear on the income statement. Dividends Cash 300 300 Totals 18,955 18,685