Question

Current Attempt in Progress Selected transactions for Cullumber Corporation during September 2018, its first month in business, are presented below: Sept. 1 Issued common shares in exchange for $18,000 cash. 2 Paid $1,300 cash for rent for the month of September. 5 Purchased equipment for $9,700, paying $2,000 in cash and the balance on account. 8 Earned $6,900 in revenue, receiving $1,100 cash and $5,800 on account of services provided. 12 Incurred $500 in advertising expense on account. 20 Paid $3,000 for repairs and maintenance expenses. 25 Paid $4,900 cash on balance owed for equipment. 27 Incurred and paid income taxes for the month amounting to $1,000. 30 Declared and paid a $600 cash dividend.

Answer 1

SOLUTION Cash 9/1 18,000 9/24 1,300 9/8 . 1,100 9/5 2,000 9/20 3,000 9/25 4,900 9/27 1,000 9/30 600 Bal. 6,300 Service Revenue Accounts Receivable 9/8 6.900 9/8 5.800 Rent Expense 2 9/ 1 .300 Equipment 4 9/5 9,700 Repairs and Maintenance Expense 3,000 9/20 Accounts Payable 4.900 9/5 9/25 7,700 9/27 - Income Tax Expense 1,000 9/12 500 Advertising Expense 500 Bal. 4 3,300 9/5 Common Shares 1 9/ 18.000 Dividends Declared 600 9/30