Question

Question 7B

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 expenses 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.

B. Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
*INSERT DATE*
*INSERT DATE*
*INSERT DATE*
*INSERT DATE*
*INSERT DATE*
*INSERT DATE*
*INSERT DATE*
*INSERT DATE*
*INSERT DATE*

Answer 1

Date Account titles and explanation Debit Credit $ 18,000 01-Sep-18 Cash Common Stock (Cash received in exchange of shares) $ 18,000 $ 1,600 $ 16,000 02-Sep-18 Prepaid Rent Cash (Rent paid in advance for the month of September 2018 ) 05-Sep-18 Equipment $ 9,800 Cash $ $ 1,800 8,000 Accounts Payable (Purchase of equipment recorded) $ $ 900 6,400 08-Sep-18 Cash Accounts Receivable Revenue Income (Income earned from the services provided) $ 7,300 $ 600 12-Sep-18 Advertising expenses Accounts Payable (Advertising expenses recorded) $ 600

$ 3,000 $ 3,000 | 20-Sep-19 Repaird and Maintenance expenses Cash ( Cash paid for the repirs and maintenance expenses incurred.) $ 4,800 $ 4,800 25-Sep-18 Accounts Payable Cash (Cash paid towards the equipment purchased on account) $ 1,000 27-Sep-18 Income Tax expense Cash (Income tax expenses paid) $ 1,000 $ 600 30-Sep-18 Dividend Cash (Payment of cash dividend recorded) $ 600