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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.

Solutions

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 1 year ago
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