Question

Selected transactions for Blue Spruce Corp. during its first month in business are presented below. Sept. 1 Issued common stock in exchange for $21,600 cash received from investors. 5 Purchased equipment for $9,310, paying $2,540 in cash and the balance on account. 8 Performed services on account for $18,000. 14 Paid salaries of $1,200. 25 Paid $3,020 cash on balance owed for equipment. 30 Paid $820 cash dividend. Complete a tabular analysis of the September transactions. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.) Assets = Liabilities + Stockholders’ Equity Retained Earnings Cash + Accounts Receivable + Equipment = Accounts Payable + Common Stock + Revenues – Expenses – Dividends Sept. 1 $ 21600 $ $ $ $ 21600 $ $ $ Sept. 5 (2540) 9310 6770 Sept. 8 18000 18000 Sept. 14 (1200) (1200) Sept. 25 (3020) (3020) Sept. 30 (820) (820) $ 14020 $ 18000 $ 9310 = $ 3750 $ 21600 $ 18000 $ (1200) $ (820) SHOW LIST OF ACCOUNTS LINK TO TEXT Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Post the transactions to T-accounts. (Post entries in the order of information presented in the question.) Cash Accounts Receivable Equipment Accounts Payable Common Stock Dividends Service Revenue Salaries and Wages Expense Click if you would like to Show Work for this question: Open Show Work

Answer 1