Question

Problem 3 Following are transactions completed by Elmer Fudd, Inc. during the month of September 2017, the first month of operations. OOO O Freddy Fudd contributed $325,000 in exchange for common stock Purchased supplies of $5,400 on account Performed services for cash $7,600 Purchased some equipment for $42,300 paying $20,000 in cash and giving a note for the balance Paid the rent on a retail store for September in the amount of $4,600 Received cash from a client for future services in the amount of $8,000 Received a bill for utilities for $3,100 D

Answer 1

End.Bal Common Stock Service Revenue Unearned Revenue Notes payable $22,300 Equipment $22,300 $22,300 $22,300 Credit Cash $ 3.25,000 Equipment $ 7,600 Rent Expenses $ 8,000 Dividend Accounts Payable Prepaid Insurance End.Bal $ 3,40,600 Common Stock $ 3,25,000 Cash $ 3,25,000 $ 20.000 $ 4,600 $ 5,000 $ 1,300 $ 1,400 $3,08,300 $3,40,600 Cash Rent Expenses $ 4,600 Income Statement $ 4,600 $ 4,600 $ 4,600 End.Bal End.Bal $3,25,000 $3,25,000 Unearned Revenue $ 8.000 Cash $ 8,000 $ 8.000 $ 8.000 Utilities Expenses $ 3,100 Income Statement $ 3,100 $ 3,100 $ 3,100 Trail Balance Accounts Title Debit Cash $3,08,300 Supplies $ 5,400 Equipment $ 42,300 Accounts Receivable $ 5,800 Prepaid Insurance $ 1,400 Common Stock Accounts Payable Notes payable Unearned Revenue Utilities Expenses payable Dividend $ 5,000 Service Revenue Utilities Expenses $ 3,100 Rent Expenses $ 4,600 $3,75,900 $3,25,000 $ 4,100 $ 22,300 $ 8,000 $ 3,100 Utilities Expenses payable Accounts Payable Supplies $ 5,400 End.Bal $ 5,400 $ $ 5,400 5,400 $ 13,400 End.Bal Utilities Expenses payable $ 3,100 Utilities Expenses | $ 3.100 $ 3,100 $ 3,100 5,400 $3,75,900 Cash End.Bal 5,400 Accounts Payable $ 1,300 Supplies $ $ 4,100 $ 5,400 $ Service Revenue $ 13,400 Cash $ Accounts receivable $ $ 13,400 $ Cash Dividend $ 5,000 Retained Earning $ 5,000 $ 5,000 $ 5,000 Income Statement 7,600 5,800 13,400 Service Revenue Accounts Receivable $ 5,800 End.Bal $ 5,800 $ 5,800 $ 5,800 $ 42,300 Cash Notes payable Equipment $ 20,000 End.Bal $ 22,300 $ 42,300 $ 42,300 Cash Prepaid Insurance $ 1,400 End.Bal $ 1,400 $ 1,400 $ 1,400