Question

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 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.

C. Post the transactions to T accounts. (Post entries in the order presented in the problem.)

CASH

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*	$____
*INSERT DATE*	$____	*INSERT DATE*	$____
*INSERT DATE*	$____	*INSERT DATE*	$____
*INSERT DATE*	$____	*INSERT DATE*	$____
*INSERT DATE*	$____	*INSERT DATE*	$____
*INSERT DATE*	$____	*INSERT DATE*	$____

Accounts Receivable

DATE:	$	DATE:	$
*INSERT DATE*	$____	*INSERT DATE*	$____

  Equipment

DATE:	$	DATE:	$
*INSERT DATE*	$____	*INSERT DATE*	$____

   Accounts Payable

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*	$____
*INSERT DATE*	$____	*INSERT DATE*	$____
*INSERT DATE*	$____	*INSERT DATE*	$____

   Common Shares

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*

   Dividends Declared

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*

Service Revenue

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*

Rent Expense

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*

Repairs and Maintenance Expense

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*

   Income Tax Expense

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*

Advertising Expense

DATE	$	DATE	$
*INSERT DATE*	$____	*INSERT DATE*

Answer 1

T-Accounts:

Cash					Service revenue
Sept.1	$18,000	Sept.2	$1,600				Sept.8	$7,300
Sept.8	$900	Sept.5	$1,800
		Sept.12	$600				Bal.	$7,300
		Sept.20	$3,000
		Sept.25	$4,800		Rent expense
		Sept.27	$1,000		Sept.2	$1,600
		Sept.30	$600
Bal.	$5,500				Bal.	$1,600
Accounts receivable					Repairs and Maintenance Expense
Sept.8	$6,400				Sept.20	$3,000
Bal.	$6,400				Bal.	$3,000
Equipment					Income Tax expense
Sept.5	$9,800				Sept.27	$1,000
Bal.	$9,800				Bal.	$1,000
Accounts payable					Advertising expense
Sept.25	$4,800	Sept.5	$8,000		Sept.12	$600
		Bal.	$3,200		Bal.	$600
Common shares
		Sept.1	$18,000
		Bal.	$18,000
Dividends declared
Sept.30	$600
Bal.	$600