The following events apply to Montgomery Company for 2016, its first year of operation: 1. Received...

The following events apply to Montgomery Company for 2016, its first year of operation: 1. Received cash of $42,000 from the issue of common stock. 2. Performed $61,000 of services on account. 3. Incurred $9,100 of other operating expenses on account. 4. Paid $34,000 cash for salaries expense. 5. Collected $41,000 of accounts receivable. 6. Paid a $4,300 dividend to the stockholders. 7. Performed $10,800 of services for cash. 8. Paid $6,800 of the accounts payable. Required a. 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.) b. Post the entries to T-accounts and determine the ending balance in each account.

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Expert Solution

a
1	Cash	42000
	Common Stock		42000

2	Accounts Receivable	61000
	Service Revenue		61000

3	Other operating expenses	9100
	Accounts Payable		9100

4	Salaries expense	34000
	Cash		34000

5	Cash	41000
	Accounts Receivable		41000

6	Dividends	4300
	Cash		4300

7	Cash	10800
	Service Revenue		10800

8	Accounts Payable	6800
	Cash		6800

b
	Cash				Accounts Receivable
Beg. Bal.	0			Beg. Bal.	0
1	42000	34000	4	2	61000
5	41000	4300	6			41000	5
7	10800	6800	8
End. Bal.	48700			20000

	Accounts Payable				Common Stock
Beg. Bal.		0		Beg. Bal.
8	6800	9100	3			42000	1
End. Bal.		2300		End. Bal.		42000

	Dividends				Service Revenue
Beg. Bal.	0			Beg. Bal.		0
6	4300					61000	2
						10800	7
End. Bal.	4300			End. Bal.		71800

	Salaries expense				Other operating expenses
Beg. Bal.	0			Beg. Bal.	0
4	34000			3	9100
End. Bal.	34000			End. Bal.	9100

ekkarill92 answered 7 months ago

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