Question

At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:

Account	Balance
Cash	$	28,200
Accounts receivable		18,400
Accounts payable		12,400
Common stock		21,900
Retained earnings		12,300

The following events apply to Oak Consulting for Year 2:

1. Provided $72,200 of services on account.
2. Incurred $3,000 of operating expenses on account.
3. Collected $46,900 of accounts receivable.
4. Paid $30,100 cash for salaries expense.
5. Paid $13,860 cash as a partial payment on accounts payable.
6. Paid a $8,900 cash dividend to the stockholders.

b & d. Post the beginning balances and the transactions from Parts a&d to the appropriate accounts.

Answer 1

			Cash	Amount in $			Retained	Earnings	Amount in $
	Opening balance	28,200	d.	30,100		b.	3,000	Opening balance	12,300
	c.	46,900	e.	13,860		d.	30,100	a.	72,200
			f.	8,900		f.	8,900
		Accounts	Receivable	Amount in $			Common	Stock	Amount in $
	Opening balance	18,400	c.	46,900				Opening balance	21,900
	a.	72,200
		Accounts	Payable	Amount in $
	e.	13,860	Opening balance	12,400
			b.	3,000