Question

Required information Exercise 3-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 3-1, 3-2, 3-3, 3-4 [The following information 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 $ 34,900 15,600 10,500 28,100 11,900 The following events apply to Oak Consulting for Year 2: 1. Provided $66,100 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $46,700 of accounts receivable. 4. Paid $38,400 cash for salaries expense. 5. Paid $12,150 cash as a partial payment on accounts payable. 6. Paid a $9,200 cash dividend to the stockholders.

Answer 1

Cash		Accounts Receivable
Beg.bal.	$34,900				Beg.bal	$15,600
3	46,700	$38,400	4		1	66,100	$46,700	3
		12,150	5
		9,200	6		End.bal	$35,000
End.bal	$21,850
Accounts Payable		Common Stock
Beg.bal		$10,500			Beg.bal		$28,100
5	$12,150	3,000	2
					End.bal		$28,100
End.bal		$1,350
Retained Earnings		Dividends
Beg.bal		$11,900			Beg.bal	$0
2	$3,000	66,100	1		6	9,200	$9,200	6
4	38,400
6	9,200				End.bal	$0
End.bal		$27,400
Service Revenue		Operating Expenses
Beg.bal		$0			Beg,.bal	$0
1	66,100	$66,100	1		2	3,000	$3,000	2
End.bal		$0			End.bal	$0
Salaries Expense
Beg.bal	$0
4	38,400	$38,400	4
End.bal	$0

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