Question

Question 1 Setected transactions for Sandhill Corporation during September 2018, its first month in business,are presented below: Sept. 1 Issued common shares in exchange for $ 22,000 cash. 2 Paid $ 1,300 cash for rent for the month of September. 5 Purchased equipment for $9,000, paying $ 1,900 in cash and the balance on account 8 Earned $7,100 in revenue, receiving $1,000 cash and $ 6,100 on account of services provided. 12 Incurred $400 in advertising expense on account. 20 Paid $ 2,900 for repairs and maintenance expenses. 25 Paid $ 5,000 cash on balance owed for equipment. 27 Incurred and paid income taxes for the month amounting to $ 1,100. 30 Declared and paid a $ 500 cash dividend.

Answer 1

Journal

Date	Account title	Debit	Credit
Sep. 1	Cash	22,000
	Common stock		22,000
Sep. 2	Rent expense	1,300
	Cash		1,300
Sep. 5	Equipment	9,000
	Cash		1,900
	Notes payable		7,100
Sep. 8	Cash	1,000
	Accounts Receivable	6,100
	Service revenue		7,100
Sep. 12	Advertising expense	400
	Notes payable		400
Sep. 20	Repairs and maintenance expense	2,900
	Cash		2,900
Sep. 25	Notes payable	5,000
	Cash		5,000
Sep. 27	Income tax expense	1,100
	Cash		1,100
Sep. 30	Retained earnings	500
	Dividend payable		500
Sep. 30	Dividend payable	500
	Cash		500

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubts. Thanks.