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 expenses 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. |
Prepare a trial balance at September 30,
2018.
CRANE CORPORATION Trial Balance Year Ended September 30, 2018Month Ended September 30 OR 2018September 30, 2018 |
||
Debit |
Credit |
|
$ | $ | |
Totals | $ | $ |
Solution:
CRANE CORPORATION | ||
Trial balance | ||
Year Ended September 30, 2018 | ||
Debit | Credit | |
Cash | $ 5,500 | $ - |
Accounts Receivable | $ 6,400 | $ - |
Equipment | $ 9,800 | $ - |
Accounts Payable ($8000- $4800) | $ - | $ 3,200 |
Common Stock | $ - | $ 18,000 |
Service Revenue | $ - | $ 7,300 |
Rent Expense | $ 1,600 | $ - |
Advertising Expense | $ 600 | $ - |
Repairs ans Maintenance Expense | $ 3,000 | $ - |
Income Tax Expense | $ 1,000 | $ - |
Dividend | $ 600 | $ - |
Totals | $ 28,500 | $ 28,500 |
Notes:
1) Cash = $18000 (Common stock) - $1600(rent expense) -$1800 (equipment purchase) +$ 900 ( Revenue ) -$ 600 (Advertisement Expense ) - $3000 ( Repairs ) - $4800(account payable ) - $1000 (Income tax) - $600 ( Dividend ) = $5,500
Selected transactions for Crane Corporation during September 2018, its first month in business, are presented below:...
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...
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...
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...
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Question 7C 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 expenses on account. 20 Paid $3,000 for...
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