Question

Selected transactions for Crane 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 $1,600 cash for rent for the month of September. 5 Purchased equipment for $9,800, paying $1,800 in cash and the balance on account. 8 Earned $7,300 in revenue, receiving $900 cash and $6,400 on account of services provided. 12 Incurred $600 in advertising expense on account. 20 Paid $3,000 for repairs and maintenance expenses. 25 Paid $4,800 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: 6100 6400 9800 CRANE CORPORATION Trial balance September 30, 2018 Cash Account receivable Equipment accounts payable common stock Dividend Revenue Rent expense Advertisement expense Repair expense Income tax expense Total 3800 18000 600 7300 16001 600 3000 1000 29100 29100 working: Advt. Exp Repair exp Income tax exp Div Cash 18000 -1600 -1800 common stock Rent exp Equipment Accounts payable Revenue A/R 18000 1600 9800 900 Sep 1. sep 2. Sep 5. Sep 8. Sep 12. Sep 20. Sep 25. Sep 27. Sep 30. T 8000 7300 6400 600 TL 600 TL 3000 -4800 -3000 -4800 -1000 -600 6100 1000 600 1 000 600 18000 1600 9800 3800 7300 6400 600 3000