Question

Selected transactions for Blue Spruce Corp. during its first month in business are presented below. Sept. 1 5 8 14 25 30 Issued common stock in exchange for $21,600 cash received from investors. Purchased equipment for $9,310, paying $2,540 in cash and the balance on account. Performed services on account for $18,100. Paid salaries of $1,300. Paid $3,020 cash on balance owed for equipment. Paid $820 cash dividend.

Answer 1

Spruce Corp. Tabular Analysis Assets = Liabilities + Accounts Accounts + Receivable + Equipment = Payable + Stockholders Equity Retained Earnings + Revenues - Expenses - Dividends + Common Stock 21600 Cash 21600 -2540 9310 = 6770 18100 + 18100 Date Sep-01 Sep-05 Sep-08 Sep-14 Sep-25 Sep-30 Totals + 1300 -3020 + -1300 -3020 -820 13920 + 820 820 + 18100 + 9310 = 3750 + 21600 + 18100 - 1300 -

Journal Enteries Date Particulars Sep-01 Cash a/c Dr. To Common Stock (Common Stock issued) Debit in $ Credit in $ 21600 21600 9310 Sep-05 Equipment a/c Dr. To Cash To Accounts Payable (Equipment purchased) 2540 6770 18100 Sep-08 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 18100 Sep-14 Dr. 1300 Salaries Expense a/c To Cash (Salaries paid) 1300 Dr, 3020 Sep-25 Accounts Payable a/c To Cash (Creditors paid) 3020 Dr. 820 Sep-30 Dividends a/c To Cash (Dividends paid) 820

Common Stock 18100 Cash 21600 Equipment Salaries Expense Accounts Payable Dividends Bal. 21600 Service Revenue Accounts Receivable 18100 18100 18100 2540 1300 3020 820 13920 21600 Salaries Expense Cash 1300 Bal. 1300 1300 1300 21600 Common Stock Cash 21600 21600 Bal. 21600 Cash Dividends 820 Bal. 820 820 820 Cash Accounts Payable Equipment 2540 6770 Bal. 9310 9310 9310 6770 Cash Bal. Accounts Payable 3020 Equipment 3750 6770 6770 Service Revenue Accounts Receivable 18100 Bal. 18100 18100 18100