(Learning Objective 3: Analyze the impact of business transactions on accounts)Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture,Accounts Payable, Common Stock, Dividends, Service Revenue, Salary Expense, and RentExpense. Record the following transactions directly in the T-accounts without using a journal.Use the letters to identify the transactions. Determine the ending balance in each account.a. Michael Dover opened a law firm by investing $23,500 cash and office furniture with afair value of $8,600. Organized as a professional corporation, the business issued common stock to Dover.b. Paid monthly rent of $1,100.c. Purchased office supplies on account, $800.d. Paid employee salaries of $2,800.e. Paid $200 of the account payable created in transaction c.f. Performed legal service on account, $10,700.g. Declared and paid dividends of $2,900.
(Learning Objective 3: Analyze the impact of business transactions on accounts)
Set up the following T-accounts: Cash,
Accounts Payable, Common Stock, Dividends, Service Revenue, Salary Expense, and Rent
Expense. Record the following transactions directly in the T-accounts without using a journal.
Use the letters to identify the transactions. Determine the ending balance in each account.
a. Michael Dover opened a law firm by investing $23,500 cash and office furniture with a
fair value of $8,600. Organized as a professional corporation, the business issued common stock to Dover.
b. Paid monthly rent of $1,100.
c. Purchased office supplies on account, $800.
d. Paid employee salaries of $2,800.
e. Paid $200 of the account payable created in transaction c.
f. Performed legal service on account, $10,700.
g. Declared and paid dividends of $2,900.
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