Question

At the beginning of Year 1, Oak Consulting had the following normal balances in its accounts:

Account	Balance
Cash	$	32,200
Accounts receivable		16,600
Accounts payable		10,500
Common stock		27,400
Retained earnings		10,900

The following events apply to Oak Consulting for Year 1:

1. Provided $67,000 of services on account.
2. Incurred $2,900 of operating expenses on account.
3. Collected $48,400 of accounts receivable.
4. Paid $37,500 cash for salaries expense.
5. Paid $12,060 cash as a partial payment on accounts payable.
6. Paid a $10,000 cash dividend to the stockholders.

b & d. Post the beginning balances and the transactions from Parts a&d to the appropriate accounts.

	Cash    Accounts Receivable Beg. Bal 32,000    Beg. Bal End. Bal 32,000 End. Bal Accounts Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Dividends Beg. Bal Beg. Bal End. Bal Bal Service Revenue Operating Expenses Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Beg. Bal End. Bal

Answer 1

		Cash					Accounts Receivable
		Beg. Bal	32,200				Beg. Bal	16600
		Account receivable	48400				Sales revenue	67000
		Salaries Expense			37500		Cash			48400
		Account payable			12060
		Dividend			10000
		End. Bal	21,040				End. Bal	35200
		Accounts Payable					Common Stock
		Beg. Bal			10500		Beg. Bal			27400
		Operating expense			2900
		Cash	12060
		End. Bal			1340		End. Bal			27400
		Retained Earnings					Dividends
		Beg. Bal			10900		Beg. Bal	0
							Cash	10000
		End. Bal			10900		Bal	10000
		Service Revenue					Operating Expenses
		Beg. Bal			0		Beg. Bal
		Account receivable			67000		Account payable	2900
		End. Bal			67000		End. Bal	2900
		Salaries Expense
		Beg. Bal
		Cash	37500
		End. Bal	37500