Question E3-4
(a)
1.
Witten company's Stockholders invested $20,000 cash in the business.
2.
Company purchased the equipments for $5,000, by paying $1,000 in cash.
3.
Witten company paid $750 cash for supplies.
4.
Company earned $9,500 in revenue, receiving $4,100 cash and $5,400 on account.
5.
Company paid $1,500 cash on accounts payable.
6.
Company paid $2,000 cash dividends to stockholders.
7.
Company paid $800 cash for rent.
8.
Company collected $450 cash from account receiveable.
9.
Company paid salaries of $3,000.
10
Company had $500 of utilities expense on account.
(b)
Company issued common stock
20,000.00$
Company's service revenue
9,500
Company issued dividends
-2,000
Company's rent expense
(800.00)$
Company paid salaries and wages expense
-3,000
Company's utilities expense
(500.00)$
Company increase in stockholder's equity
23,200.00$
(6,300.00)$
(c)
Company's service revenue
$ 9,500
Company's rent expense
(800.00)$
Company paid salaries and wages expense
(3,000.00)$
Company's Utilities expense
(500.00)$
Total expences
(4,300.00)$
Net income
$ 5,200
Question E3-9
General Journal
Month
Date
Account Titles / Explanation
Debit (DR)
Credit (CR)
May
4
Accounts Payable
700.00$
Cash
700.00$
7
Accounts Receivable
6,800.00$
Service Revenue
6,800.00$
8
Supplies
850
Accounts Payable
850
9
Equipment
1,000.00$
Cash
1,000.00$
17
Salaries and Wages Expense
530
Cash
530
22
Maintenance and Repair Expense
900
Accounts Payable
900
29
Prepaid Insurance
1,200
Cash
1,200
Question P3-5A
(a)
Date
Account Titles and Explanation
Debit
Apr. 1
Cash
18,000.00$
Common Stock
(Issued shares of stock for cash)
1
No entry—not a transaction.
2
Rent Expense
900
Cash
(Paid monthly office rent)
3
Supplies
1,300
Accounts Payable
(Purchased supplies on account from Spring Green