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The following events apply to Montgomery Company for Year 1, its first year of operation: 1. Received cash of $38,000 from the issue of common stock. 2. Performed $57,000 of services on account. 3. Incurred $8,300 of other operating expenses on account. 4. Paid $30,000 cash for salaries expense. 5. Collected $39,000 of accounts receivable. 6. Paid a $3,900 dividend to the stockholders. 7. Performed $10,400 of services for cash. 8. Paid $6,400 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c. & d. Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1.

The following events apply to Montgomery Company for Year 1, its first year of operation: 1. Received cash of $38,000 from the issue of common stock. 2. Performed $57,000 of services on account. 3. Incurred $8,300 of other operating expenses on account. 4. Paid $30,000 cash for salaries expense. 5. Collected $39,000 of accounts receivable. 6. Paid a $3,900 dividend to the stockholders. 7. Performed $10,400 of services for cash. 8. Paid $6,400 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c. & d. Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1.

FINANCIAL ACCOUNTING
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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## Educational Resource: Recording Journal Entries ### Transaction Recording Instructions - **Section:** General Journal Entries - **Guidance:** Record the preceding transactions in general journal form. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. ### Journal Entry Worksheet Use this form to input and analyze journal entries. --- ### Example Transaction **Event:** Received cash of $38,000 from the issue of common stock. **Journal Entry:** || **Event** | **General Journal** | **Debit** | **Credit** | | --- | --- | --- | --- | --- | | 1 | | | | | **Note:** Enter debits before credits. --- ### Actions - **Record Entry:** Use this button to submit the journal entry to the general ledger. - **Clear Entry:** Use this button to reset the form and clear any inputted data. - **View General Journal:** Use this button to view all recorded journal entries in the general ledger. ---
Transcribed Image Text:## Educational Resource: Recording Journal Entries ### Transaction Recording Instructions - **Section:** General Journal Entries - **Guidance:** Record the preceding transactions in general journal form. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. ### Journal Entry Worksheet Use this form to input and analyze journal entries. --- ### Example Transaction **Event:** Received cash of $38,000 from the issue of common stock. **Journal Entry:** || **Event** | **General Journal** | **Debit** | **Credit** | | --- | --- | --- | --- | --- | | 1 | | | | | **Note:** Enter debits before credits. --- ### Actions - **Record Entry:** Use this button to submit the journal entry to the general ledger. - **Clear Entry:** Use this button to reset the form and clear any inputted data. - **View General Journal:** Use this button to view all recorded journal entries in the general ledger. ---
### Accounting Exercise: Transactions for Montgomery Company (Year 1) The following events apply to Montgomery Company for Year 1, its first year of operation: 1. **Received cash of $38,000 from the issue of common stock.** 2. **Performed $57,000 of services on account.** 3. **Incurred $8,300 of other operating expenses on account.** 4. **Paid $30,000 cash for salaries expense.** 5. **Collected $39,000 of accounts receivable.** 6. **Paid a $3,900 dividend to the stockholders.** 7. **Performed $10,400 of services for cash.** 8. **Paid $6,400 of the accounts payable.** #### Required: a. **Record the preceding transactions in general journal form.** b. **Post the entries to T-accounts and determine the ending balance in each account.** c. & d. **Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1.** **Instructions:** Complete this question by entering your answers in the provided tabs. - **Req A**: For recording the transactions in the general journal. - **Req B**: For posting entries to T-accounts and determining the ending balances. - **Req C and D**: For calculating total assets and net income. This exercise helps students practice recording and analyzing business transactions, ensuring a strong understanding of foundational accounting principles.
Transcribed Image Text:### Accounting Exercise: Transactions for Montgomery Company (Year 1) The following events apply to Montgomery Company for Year 1, its first year of operation: 1. **Received cash of $38,000 from the issue of common stock.** 2. **Performed $57,000 of services on account.** 3. **Incurred $8,300 of other operating expenses on account.** 4. **Paid $30,000 cash for salaries expense.** 5. **Collected $39,000 of accounts receivable.** 6. **Paid a $3,900 dividend to the stockholders.** 7. **Performed $10,400 of services for cash.** 8. **Paid $6,400 of the accounts payable.** #### Required: a. **Record the preceding transactions in general journal form.** b. **Post the entries to T-accounts and determine the ending balance in each account.** c. & d. **Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1.** **Instructions:** Complete this question by entering your answers in the provided tabs. - **Req A**: For recording the transactions in the general journal. - **Req B**: For posting entries to T-accounts and determining the ending balances. - **Req C and D**: For calculating total assets and net income. This exercise helps students practice recording and analyzing business transactions, ensuring a strong understanding of foundational accounting principles.
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