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

To shares f. To Sales (Revenue) Cash Ale ($ 18000 Sept. 2. Bay Rent 1,600 goo I s. Gy Equinment 1,800 e Bay Restorumos 4,000 1. puyable 27. By Income 1000 1 tax 30. B, Dividend 600 18,000 1.8.900 l By balance du 6,100 Sept. 8 Accounts Receivable Ale To Sales 6,400) CRevenue) By balance cld 6,400 6400 6,400 Equipment al s. To cash To Accanto payable 1,800 8,000 1. By bulance dd 9,800 28001 Wiero

8000 mon Equipment Account Porable Alc ($) Sp. zs. To cash 4800 sept. 5 Bar equirment ? T 12. By Adut. Soo To balance clu 8.800 &000 8,600 Expense common shares Alc kept cash (4) 18,000 To balance cld 18,000 | 18,000 Tema Declared ak Dividends Sept. 30 To cash 600 Gool Service Revenue Ale By Cash I By Account Receivable 900 6400 1300

- ) Septo Rent Expense Sept.a. 1,600 | Day " To cash cash Repairs & Maintenance (st) Sept.20 o cash 3,000 Expense Income Tax Sept. 27 To cash 2000 Adventisement Expense 1st Sept. 12 To Accounts 600 payable