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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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REQUIREMENT: JOURNAL ENTRIES
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