ACC 290 Week 2 Individual Problems and Exercises ( A + Material )
E3-4
(a) 1. Stockholders invested $20,000 cash in the business.
2. Purchased equipment for $5,000, paying $1,000 in cash and the balance of $4,000 on account.
3. Paid $750 cash for supplies.
4. Earned $9,500 in revenue, receiving $4,100 cash and $5,400 on
account.
5. Paid $1,500 cash on accounts payable.
6. Paid $2,000 cash dividends to stockholders.
7. Paid $800 cash for rent.
8. Collected $450 cash from customers on account.
9. Paid salaries of $3,000.
10. Incurred $300 of utilities expense on account.
(b) Issued common stock $20,000
Service revenue 9,500
Dividends (2,000)
Rent expense (800)
Salaries and wages expense (3,000)
Utilities expense (300)
Increase in stockholders’ equity $23,400
(c) Service revenue $ 9,500
Rent expense (800)
Salaries and wages expense (3,000)
Utilities expense (300)
Net income $ 5,400
E3-9
General Journal
| Date | Account Titles | Debit | Credit | |||
| May 4 | Accounts Payable
Cash |
700 |
700 |
|||
| 7 | Accounts Receivable
Service Revenue |
6,800 |
6,800 |
|||
| 8 | Supplies
Accounts Payable |
850 |
850 |
|||
| 9 | Equipment
Cash |
1,000 |
1,000 |
|||
| 17 | Salaries and Wages Expense
Cash |
530 |
530 |
|||
| 22 | Maintenance and Repair Expense
Accounts Payable |
900 |
900 |
|||
| 29 | Prepaid Insurance
Cash |
1,200 |
1,200 |
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