Question

! Required information [The following i ormation applies to the questions displayed below.) At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 42,000 25,000 8,400 24,000 34,600 The following events apply to Oak Consulting for Year 2: 1. Provided $185,000 of services on account 2. Incurred $45,800 of operating expenses on account. 3. Collected $140,000 of accounts receivable. 4. Paid $120,000 cash for salaries expense. 5. Paid $31,400 cash as a partial payment on accounts payable. 6. Paid a $10,000 cash dividend to the stockholders. Required Record these events in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in to first account field.) View transaction list

Answer 1

Assets II Net income Statement of cash flows Balance sheet Liabilities Accounts payable 8,400 Cash + + Accounts receivable 25,000 1,85,000 + Income statement Stockholders' equity Revenue Expenses Common Retained stock earnings 24,000 + 34,600 1,85,000 1,85,000 -45,800 45,800 42,000 + = + = + + + = NA + = 45,800 + + = NA + -1,40,000 + 11 + OA Bal. 1) 2) 3) 4) 5) 6) Bal. + = + + -1,20,000 1 1,20,000 II OA NA NA 1,40,000 -1,20,000 -31,400 -10,000 -21,400 + 1,40,000 -1,20,000 -31,400 - 10,000 20,600 = + -31,400 + = OA + = + + FA - 10,000 43,800 + 70,000 = 22,800 + 24,000 + 1,85,000 = 1,65,800 19,200 CS Scanned with CamScanner