The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity's assets, liabili- ties, and stockholders' equity on that date. Balance Account Title Debit Credit Cash. $26,000 Accounts receivable. 4,500 Accounts payable $ 2,000 Common stock 10,000 Retained earnings. 18,500 Total $30,500 $30,500 During March, the business completed the following transactions: a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business. b. Paid cash of $40,000 to a real estate company to acquire land. c. Performed a service for a customer and received cash of $5,000. d. Purchased supplies on credit, $300. e. Performed a service for a customer and earned $2,600 of revenue on account. f. Paid $1,200 on account. g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i. Received a $200 utility bill that will be paid next week. j. Declared and paid a dividend of $1,800. Requirements 1. Use the T-account format to create the following accounts and balances: 1 Assets-Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no balance 1 Liabilities-Accounts Payable, $2,000; Note Payable, no balance 1 Stockholders' Equity-Common Stock, $10,000; Retained Earnings, $18,500; Dividends, no balance 1 Revenues-Service Revenue, no balance 1 Expenses-(none have balances) Salary Expense, Rent Expense, Interest Expense, Utili- ties Expense 2. Journalize the preceding transactions. Key the joumal entries by transaction letter. 3. Post the transactions from the journal to the ledger and compute the balance in each account after all the transactions have been posted.
The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity's assets, liabili- ties, and stockholders' equity on that date. Balance Account Title Debit Credit Cash. $26,000 Accounts receivable. 4,500 Accounts payable $ 2,000 Common stock 10,000 Retained earnings. 18,500 Total $30,500 $30,500 During March, the business completed the following transactions: a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business. b. Paid cash of $40,000 to a real estate company to acquire land. c. Performed a service for a customer and received cash of $5,000. d. Purchased supplies on credit, $300. e. Performed a service for a customer and earned $2,600 of revenue on account. f. Paid $1,200 on account. g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i. Received a $200 utility bill that will be paid next week. j. Declared and paid a dividend of $1,800. Requirements 1. Use the T-account format to create the following accounts and balances: 1 Assets-Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no balance 1 Liabilities-Accounts Payable, $2,000; Note Payable, no balance 1 Stockholders' Equity-Common Stock, $10,000; Retained Earnings, $18,500; Dividends, no balance 1 Revenues-Service Revenue, no balance 1 Expenses-(none have balances) Salary Expense, Rent Expense, Interest Expense, Utili- ties Expense 2. Journalize the preceding transactions. Key the joumal entries by transaction letter. 3. Post the transactions from the journal to the ledger and compute the balance in each account after all the transactions have been posted.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 4PA: Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures....
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Transcribed Image Text:The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity's assets, liabili-
ties, and stockholders' equity on that date.
Balance
Account Title
Debit
Credit
Cash.
$26,000
Accounts receivable.
4,500
$ 2,000
Accounts payable .
Common stock.
Retained earnings
10,000
18,500
Total
$30,500
$30,500
During March, the business completed the following transactions:
a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the
business.
b. Paid cash of $40,000 to a real estate company to acquire land.
c. Performed a service for a customer and received cash of $5,000.
d. Purchased supplies on credit, $300.
e. Performed a service for a customer and earned $2,600 of revenue on account.
f. Paid $1,200 on account.
g. Paid the following cash expenses: salaries, S$3,000; rent, $1,500; and interest, $400.
h. Received $3,100 on account.
i. Received a $200 utility bill that will be paid next week.
j. Declared and paid a dividend of $1,800.
Requirements
1. Use the T-account format to create the following accounts and balances:
1 Assets-Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no
balance
1 Liabilities-Accounts Payable, $2,000; Note Payable, no balance
1 Stockholders' Equity-Common Stock, $10,000; Retained Earnings, $18,500; Dividends,
no balance
1 Revenues-Service Revenue, no balance
1 Expenses-(none have balances) Salary Expense, Rent Expense, Interest Expense, Utili-
ties Expense
2. Jourmalize the preceding transactions. Key the journal entries by transaction letter.
3. Post the transactions from the journal to the ledger and compute the balance in each account after
all the transactions have been posted.
4. Prepare the trial balance of Dunn Service Center, Inc., at March 31, 2018.
5. To determine the net income or net loss of the company during the month of March, prepare a
single-step income statement for the month ended March 31, 2018. List the expenses in order
from the largest to the smallest.
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The companies record the transactions of a particular period primarily in the form of a journal entry and post them in the relevant ledgers.
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