a. Luke Newton opened a law firm by investing $22,000 cash and office furniture with a fair value of $8,700. Organized as a professional corporation, the business issued common stock to Newton. b. Paid monthly rent of $1,000. c. Purchased office supplies on account, $1,500. d. Paid employees' salaries of $2,700. e. Paid $550 of the accounts payable created in transaction c. 1. Performed legal service on account, $11,100. g. Declared and paid dividends of $2,300.

a. Luke Newton opened a law firm by investing $22,000 cash and office furniture with a fair value of $8,700. Organized as a professional corporation, the business issued common stock to Newton. b. Paid monthly rent of $1,000. c. Purchased office supplies on account, $1,500. d. Paid employees' salaries of $2,700. e. Paid $550 of the accounts payable created in transaction c. 1. Performed legal service on account, $11,100. g. Declared and paid dividends of $2,300.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter3: The Double-entry Framework

Section: Chapter Questions

Problem 6SEB: TRANSACTION ANALYSIS George Atlas started a business on June 1,20--. Analyze the following...

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TRANSACTION ANALYSIS Linda Kipp starred a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side. (a) Invested cash in the business, 5,000. (b) Bought equipment for cash, 700. (c) Bought equipment on account, 600. (d) Paid cash on account for equipment purchased in transaction (c), 400. (e) Withdrew cash for personal use, 900. FOOT AND BALANCE T ACCOUNTS Foot and balance the T accounts prepared Exercise 3-5A if necessary.
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