The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity’s assets, liabilities, and stockholders’ equity on that date. During March, the business completed the following transactions: a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business. b. Paid cash of $40,000 to a real estate company to acquire land. c. Performed a service for a customer and received cash of $5,000. d. Purchased supplies on credit, $300. e. Performed a service for a customer and earned $2,600 of revenue on account. f. Paid $1,200 on account. g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i. Received a $200 utility bill that will be paid next week. j. Declared and paid a dividend of $1,800 Requirements 1. Use the T-account format to create the following accounts and balances: ■ Assets—Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no balance ■ Liabilities—Accounts Payable, $2,000; Note Payable, no balance ■ Stockholders’ Equity—Common Stock, $10,000; Retained Earnings, $18,500; Dividends, no balance ■ Revenues—Service Revenue, no balance ■ Expenses—(none have balances) Salary Expense, Rent Expense, Interest Expense, Utilities Expense 2. Journalize the preceding transactions. Key the journal entries by transaction letter.
The
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During March, the business completed the following transactions:
a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business.
b. Paid cash of $40,000 to a real estate company to acquire land.
c. Performed a service for a customer and received cash of $5,000.
d. Purchased supplies on credit, $300.
e. Performed a service for a customer and earned $2,600 of revenue on account.
f. Paid $1,200 on account.
g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400.
h. Received $3,100 on account.
i. Received a $200 utility bill that will be paid next week.
j. Declared and paid a dividend of $1,800
Requirements
1. Use the T-account format to create the following accounts and balances:
■ Assets—Cash, $26,000;
■ Liabilities—Accounts Payable, $2,000; Note Payable, no balance
■ Stockholders’ Equity—Common Stock, $10,000;
balance
■ Revenues—Service Revenue, no balance
■ Expenses—(none have balances) Salary Expense, Rent Expense, Interest Expense, Utilities
Expense
2. Journalize the preceding transactions. Key the
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