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The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31 2012 Accounts Receivable

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2012.

Accounts Receivable

$11,400

Prepaid Insurance

$  1,800

Accounts Payable

7,400

Maintenance/Repairs Expense

1,200

Cash

17,940

Service Revenue

15,500

Equipment

59,360

Dividends

800

Gasoline Expense

950

Common Stock

40,000

Insurance Expense

600

Salaries and Wages Expense

6,400

Notes Payable, due 2015

31,450

Salaries and Wages Payable

900

 

 

Retained Earnings

5,200

 

 

   (July 1, 2012)

 

 

Instructions

Prepare an income statement, a retained earnings statement, and a classified balance sheet for the month of July 2012.

Ex. 237

Selected transactions for Stockton Corporation during its first month in business are presented below:

Sept. 1Issued common stock in exchange for $25,000 cash received from investors.

5Purchased equipment for $20,000, paying $2,000 in cash and the balance on account.

25Paid $6,000 cash on balance owed for equipment.

30Paid $1,000 cash dividend.

Stockton's chart of accounts shows: Cash, Equipment, Accounts Payable, Common Stock, and Dividends.

Instructions

(a)Prepare a tabular analysis of the September transactions. The column headings should be: Cash + Equipment = Accounts Payable + Stockholders' Equity. For transactions affecting stockholders' equity, provide explanations in the right margin.

(b)Journalize the transactions. Do not provide explanations.

(c)Post the transactions to T accounts.

Mar 29 2020 View more View Less

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