Question

Smith Computing, Inc. performed a transactional analysis to determine the effects of the transactions on their accounting equation. (Click the icon to view the completed accounting equation analysis.) The following amounts summarize the financial position of Smith Computing, Inc., on September 30, 2018: (Click the icon to view the September 30, 2018|financial position.) During October 2018, Smith Computing completed these transactions: (Click the icon to view the transactions.) Read the requirements 0 Accounting Equation Analysis Requirement 1. Journalize the transactions of Smith Computing, Inc. (Record debits first, then credits. Exclude explanations from any journal entries.) a. The company received cash of $4,400 and issued common stock. Journal Entry 0 September 30, 2018 financial position Accounts Debit Credit (a) Cash Common Stock Assets Assets Liabilities Stockholders' Equity = + Accounts + Receivable + Common Stock Supplies + Liabilities Accounts Payable 7,900 Accounts + Receivable + 3,550 Stockholders' Equity Common Retained Stock + Earnings 6,100 4,150 Accounts Payable 7,900 + Equipment = 12,300 = + 3,550 Cash 2,300 Supplies - Equipment 12,300 6,100 4,400 Retained Type of Equity + Earnings Transaction 4.150 Issued stock 6,100 Service revenue Cash Bal 2.300 (a) 4.400 (b) 6,100 (c) (4,000) b. Performed services for a customer and received cash of $6,100. Bal Journal Entry Accounts Debit Credit Print Done (4,000) 1.100 1,100 (b) Cash (e) 2,000 Service Revenue (2.000) 4.800 X i Transactions (g) (1,600) 4.800 Service revenue (1,000) Rent expense (600) Advertising expense c. Paid $4,000 on accounts payable. (h) _(2,800) (2,800) Dividends Journal Entry 6,400 1,100 12.300 10,500 Bal Total 10,650 26,150 Debit 6,350 26,150 Accounts Credit a. The company received cash of $4,400 and issued common stock. b. Performed services for a customer and received cash of S6, 100. c. Paid $4.000 on accounts payable. d. Purchased supplies on account, $1,100. e. Collected cash from a customer on account, $2,000. f. Consulted on the design of a computer system and billed the customer for services rendered, $4,800. g. Recorded the following business expenses for the month: (1) paid office rent- $1,000; (2) paid advertising—S600. h. Declared and paid a cash dividend of $2,800. Print Done d. Purchased supplies on account, $1,100. * Requirements Journal Entry Print Done Accounts Debit Credit 1. Journalize the transactions of Smith Computing, Inc. Explanations are not required. 2. Prepare a T-account for each account. Insert in each T-account its September 30 balance as given (example: Cash $2,300). Then, post the October transactions to the T-accounts. 3. Compute the balance in each account. e. Collected cash from a customer on account, $2,000. Print Done lurnal Entru Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Real smith computing Inc (Joumal Entry Account Name Debit credit Date a 4,400 cash TO common stock $ 4,400 b. cash TO senice Revenale s 6.100 $ 6,100 s 4000 Accounts payable TO cash $ 4,000 d. supplies $ 1,100 $ TO Accounts payable 1.100 e cash TO • 2,000 $ 2000 Account Receivable f $ 4.800 Accounts receivable . To Senice Revenue $ 4,800 8. (I) office Rent expense Advertising Expense To cash $ 1000 600 $ 1600 Dividend $ 2800 - TO cash $ 2800

IReg283 T Accounts Beg Balance 4000 cash $ 2300 $ 4400 $ 6100 $ 2000 09 1600 2800 Ending Balance 6400 Common STOCK Beg Bal (9) Ending Bal § 6100 6600 $ 10,500 Beg Balance Account Recivable $ 3550 e 4800 $ 63 SO 2000 Ending Balance Retained Earnings Expense (1000+600) $1600 Beg. Boy s Dividend $ 2800 senice Revenue 4150 $ 10900 Ending Bol 10650 supplies 1100 F Ending Boy & ILOO

Dividends $ 2800 Retoned caming & 2800 Bol Beg Bal Equipment s 12,300 Ending Bolonco $ 12,300 senice Revenue 6100 4800 Retained camings $ 10900 ( Ending Bol Accounts payable Beg Balance $ 7900 1100 $ 4000 Ending Bal 5ooo Rent expense (9) s 2000 Retained canings S 1000 Ending Bol - novertising Expense $ 600 Retoned comings & 600 Ending Bal $o