Question

Selected transactions for Crane Corporation during September 2018, its first month in business, are presented below: Sept. 1 Issued common shares in exchange for $18,000 cash. 2 Paid $1,600 cash for rent for the month of September. 5 Purchased equipment for $9,800, paying $1,800 in cash and the balance on account. 8 Earned $7,300 in revenue, receiving $900 cash and $6,400 on account of services provided. 12 Incurred $600 in advertising expense on account. 20 Paid $3,000 for repairs and maintenance expenses. 25 Paid $4,800 cash on balance owed for equipment. 27 Incurred and paid income taxes for the month amounting to $1,000. 30 Declared and paid a $600 cash dividend.

Answer 1

Journal Entries
				Date	General,Journal	Debit	Credit
1-Sep	Cash	$     18,000.00
	To Common Stock		$   18,000.00
	(Being amount of issued common shares in exchange for cash)
2-Sep	Prepaid Rent	$       1,600.00
	To Cash		$     1,600.00
	(Being amount of Preepaid Rent paid for cash)
5-Sep	Equipment	$       9,800.00
	To Cash		$     1,800.00
	To Accounts Payable		$     8,000.00
	(Being amount of Equipment purchased by paying $1800 cash and balance accounts payable)
8-Sep	Cash	$           900.00
	Accounts Receivable	$       6,400.00
	To Service Revenue		$     7,300.00
	(Being amount of Service Revenue provided)
12-Sep	Advertising Expense	$           600.00
	To Accounts Payable		$         600.00
	(Being amount of Advertisement Expense on account)
20-Sep	Repairs & Maintenance	$       3,000.00
	To Cash		$     3,000.00
	(Being amount of Repair & Maintenance Expenses paid)
25-Sep	Accounts Payable	$       4,800.00
	To Cash		$     4,800.00
	(Being amount of Cash paid)
27-Sep	Income Taxes	$       1,000.00
	To Cash		$     1,000.00
	(Being amount of Income Taxes Paid)
30-Sep	Dividend	$           600.00
	To Cash		$         600.00
	(Being amount of Dividend Paid)
	Crane Corporation
	Trial Balance
	September 30th
	Account Title	Debit	Credit
	Cash($18000+$900-$16000-$1800-$3000-$4800-$1000-$600)	$       6,100.00
	Accounts Receivable	$       6,400.00
	Prepaid Rent	$       1,600.00
	Equipment($1800+$8000)	$       9,800.00
	Accounts Payable($8000+$600-$4800)		$     3,800.00
	Common Stock		$   18,000.00
	Service Revenue		$     7,300.00
	Advertisement Expense	$           600.00
	Income Tax Expense	$       1,000.00
	Repair & Maintenance Expense	$       3,000.00
	Dividend	$           600.00
	Total	$     29,100.00	$   29,100.00