On August 1, 2021, Lia Sayer and her brother started their own accounting firm, Sayer CPAS, Inc. in Norwood, Ohio. The following business transactions occurred during the first month: Aug. 2: Issued 1,000 shares of stock in exchange for $15,000 received from stockholders. The stock's par value is $5 per share, and the remainder is in excess of par value. Aug. 3: Paid S600 for rent for office space for the month of August. Aug. 4: Purchased office equipment for $4,000, paying half in cash and the other half on account. Aug. 6: Paid S150 to run advertisements in this week's Xavier Newswire and Cincinnati Enquirer. Aug. 10: Received $2,400 for accounting services performed on this date. Aug. 12: Performed $6,200 of accounting services on account. Aug. 13: Borrowed $5,000 from 5/3 Bank under the terms of a 36-month note. All principal and interest will be paid on the maturity date. Aug. 13: Paid $2,400 for employee salaries. Aug. 16: Purchased S500 of supplies on account. None of the supplies were used yet during August. Aug. 23: Collected $1,200 from clients for the services performed on August 12th, Aug. 27: Paid a $200 dividend. Aug. 28: Paid for the supplies that were purchased on August 16th, Aug. 31: Paid $2,400 for employee salaries. Aug. 31: Recorded an adjustment to accrue utilities for the month of August, estimated at $190, to be paid in mid-September. Aug. 31: Recorded an adjustment to recognize $40 of depreciation on the equipment. Aug. 31: Recorded an adjustment to accrue $10 of interest on the 5/3 Bank note.
On August 1, 2021, Lia Sayer and her brother started their own accounting firm, Sayer CPAS, Inc. in Norwood, Ohio. The following business transactions occurred during the first month: Aug. 2: Issued 1,000 shares of stock in exchange for $15,000 received from stockholders. The stock's par value is $5 per share, and the remainder is in excess of par value. Aug. 3: Paid S600 for rent for office space for the month of August. Aug. 4: Purchased office equipment for $4,000, paying half in cash and the other half on account. Aug. 6: Paid S150 to run advertisements in this week's Xavier Newswire and Cincinnati Enquirer. Aug. 10: Received $2,400 for accounting services performed on this date. Aug. 12: Performed $6,200 of accounting services on account. Aug. 13: Borrowed $5,000 from 5/3 Bank under the terms of a 36-month note. All principal and interest will be paid on the maturity date. Aug. 13: Paid $2,400 for employee salaries. Aug. 16: Purchased S500 of supplies on account. None of the supplies were used yet during August. Aug. 23: Collected $1,200 from clients for the services performed on August 12th, Aug. 27: Paid a $200 dividend. Aug. 28: Paid for the supplies that were purchased on August 16th, Aug. 31: Paid $2,400 for employee salaries. Aug. 31: Recorded an adjustment to accrue utilities for the month of August, estimated at $190, to be paid in mid-September. Aug. 31: Recorded an adjustment to recognize $40 of depreciation on the equipment. Aug. 31: Recorded an adjustment to accrue $10 of interest on the 5/3 Bank note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Provide a ledger account instead!
Transcribed Image Text:On August 1, 2021, Lia Sayer and her brother started their own accounting firm, Sayer CPAS, Inc. in
Norwood, Ohio. The following business transactions occurred during the first month:
Aug. 2: Issued 1,000 shares of stock in exchange for $15,000 received from stockholders.
The stock's par value is $5 per share, and the remainder is in excess of par value.
Aug. 3: Paid S600 for rent for office space for the month of August.
Aug. 4: Purchased office equipment for $4,000, paying half in cash and the other half on account.
Aug. 6: Paid S150 to run advertisements in this week's Xavier Newswire and Cincinnati Enquirer.
Aug. 10: Received $2,400 for accounting services performed on this date.
Aug. 12: Performed $6,200 of accounting services on account.
Aug. 13: Borrowed $5,000 from 5/3 Bank under the terms of a 36-month note. All principal and
interest will be paid on the maturity date.
Aug. 13: Paid $2,400 for employee salaries.
Aug. 16: Purchased $500 of supplies on account. None of the supplies were used yet during August.
Aug. 23: Collected S1,200 from clients for the services performed on August 12th.
Aug. 27: Paid a $200 dividend.
Aug. 28: Paid for the supplies that were purchased on August 16th.
Aug. 31: Paid $2,400 for employee salaries.
Aug. 31: Recorded an adjustment to acerue utilities for the month of August, estimated at $190, to be
paid in mid-September.
Aug. 31: Recorded an adjustment to recognize $40 of depreciation on the equipment.
Aug. 31: Recorded an adjustment to accrue $10 of interest on the 5/3 Bank note.
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