On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Debit $ 43,800 46,700 8,600 75,000 Credit Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital $ 10,100 15,700 11,000 91,000 46,300 Retained Earnings Totals $ 174,100 $174,100 During January Year 1, the following transactions occur: January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000. January 9 Provide services to customers on account, $16,700. January 10 Purchase additional supplies on account, $6,000. January 12 Purchase 1,300 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $17,60o. January 21 Provide services to customers for cash, $50,200. January 22 Receive cash on accounts receivable, $17,700. January 29 Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: The company had 11,000 shares outstanding on January 1, Year 1, and dividends are not on treasury stock.) January 30 Resell 800 shares of treasury stock for $21 per share. January 31 Pay cash for salaries during January, $43,100.

On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Debit $ 43,800 46,700 8,600 75,000 Credit Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital $ 10,100 15,700 11,000 91,000 46,300 Retained Earnings Totals $ 174,100 $174,100 During January Year 1, the following transactions occur: January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000. January 9 Provide services to customers on account, $16,700. January 10 Purchase additional supplies on account, $6,000. January 12 Purchase 1,300 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $17,60o. January 21 Provide services to customers for cash, $50,200. January 22 Receive cash on accounts receivable, $17,700. January 29 Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: The company had 11,000 shares outstanding on January 1, Year 1, and dividends are not on treasury stock.) January 30 Resell 800 shares of treasury stock for $21 per share. January 31 Pay cash for salaries during January, $43,100.

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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