Question

Exercise 3-14 (Part Level Submission) Selected transactions for Blue Spruce Corp. during its first month in business are presented below. Sept. 1 5 8 14 25 30 Issued common stock in exchange for $20,500 cash received from investors. Purchased equipment for $9,430, paying $2,590 in cash and the balance on account. Performed services on account for $18,000. Paid salaries of $1,200. Paid $3,140 cash on balance owed for equipment. Paid $640 cash dividend. (a) Your answer is correct. 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 Revenues - Expenses - + Accounts Receivable + Equipment Dividends Cash 20500 = Accounts Payable + Common Stock + 20500 2 Sept. 5 T -2590 9430 6840 1 18000 T 18000 Sept. 14 T -1200 Sept. 25 T -3140 -31401 Sept. 30 -640 -640 129301 18000 94301 20500 18000 -640 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Credit Debit 20,500 $ $ 20,500 $ 9,430 $ 2,590 6,840 $ 18,000 Date Account Titles and Explanation Sep. 1 Cash Common stock Sep. 5 Equipment Cash Accounts Payable Sep. 8 Accounts Receivables Service Revenue Sep.14 Salaries Cash Sep. 25 Accounts Payable Cash Sep. 30 Dividends Cash $ 18,000 $ 1,200 $ 1,200 $ 3,140 $ 3,140 640 $ 640