Question

Sales of services, $122,000, of which $36,600 was on credit. collected on accounts receivable, $25,000. issued shares of common stock in exchange for $13,000 in cash. paid salaries, $44,500 (of which $8,500 was for salaries payable). paid miscellaneous expenses, $24,000. purchased equipment for $15,500 in cash. paid $2,950 in cash dividends to shareholders.

Answer 1

Cash.............................................................$36600

Accounts Receivable...............................$85400

To Sales......................................................................................$122000

(Being Sales made for cash and credit)

Cash...........................................................DR$25000

To Accounts Receivable..........................................................$25000

(Being Cash Received from accounts Rec)

Cash..........................................................DR $13000

To Shareholders Equity ...................................................$13000

(Being Shares issued for cash)

Salary Payable................................DR $8500

Salary Expense..............................DR $36000

To Cash $44500

(Being Salary Paid)

Miscellaneous Exepense.....................DR $24000

To Cash........................................................................................$24000

(Being Exp Paid)

Equipment ....................................DR $15500

To Cash............................................................................$15500

(Being Eqp Purchased)

Dividend Payable....................................DR $2950

To Cash......................................................................................$2950

(Being Dividends Paid)