Question

Fredonia Repair Inc. was started on May 1. A summary of May transactions is presented below.

1. Stockholders invested $ 10,000 cash in the business in exchange for common stock.

2. Purchased equipment for $ 5,000 cash.

3. Paid $ 400 cash for May office rent.

4. Paid $ 300 cash for supplies.

5. Incurred $ 250 of advertising costs in the Beacon News on account.

6. Received $ 4,700 in cash from customers for repair service.

7. Declared and paid a $ 700 cash dividend.

8. Paid part-time employee salaries $ 1,000 .

9. Paid utility bills $ 140).

10. Performed repair services worth $ 1,100 on account.

11. Collected cash of $ 120 for services billed in transaction (10).

Answer 1