The following events apply to Pearson Service Co. for 2018, its first year of operation: Received...

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The following events apply to Pearson Service Co. for 2018, its first year of operation: Received...

The following events apply to Pearson Service Co. for 2018, its first year of operation:

Received cash of $50,000 from the issue of common stock.
Performed $90,000 worth of services on account.
Paid $64,000 cash for salaries expense.
Purchased supplies for $12,000 on account.
Collected $78,000 of accounts receivable.
Paid $8,500 of the accounts payable.
Paid a $5,000 dividend to the stockholders.
Had $1,500 of supplies on hand at the end of the period.

Required

Record these events in general journal form.
Post the entries to T-accounts and determine the ending balance in each account.
Determine the amount of total assets at the end of 2018.
Determine the amount of net income for 2018.

business accounting

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Answer 1

Answer #1

Answer (a):

Transaction General Journal Debit Credit Cash $50,000 а $50,000 Common Stock (to record issue of common stock) Accounts Recei

Answer (b):

Answer (c):

Amount of total assets at the end of 2018 = Cash + Accounts Receivable + Supplies = 50500 + 12000 +1500 =$64,000

Amount of total assets at the end of 2018 = $64,000

Answer (d):

Amount of net income for 2018 = $15,500

Working:

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Answer 2

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The following events apply to Pearson Service Co. for 2018, its first year of operation: Received...

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