recording events in a horizontal statements model 1.acquired $12,000 cash from t
ID: 2386192 • Letter: R
Question
recording events in a horizontal statements model1.acquired $12,000 cash from the issue of common stock
2.provided services for $4,000 CASH
3. provided $12,000 of SERVICES on account
4. collected $9,000 cash from the account receivable created in event 3
5.Paid $900 cash to purchase supplies
6.Had $100 of supplies on hand at the end of the accounting period
7.Received $1,800 cash in advance for services to be performed in the future
8.performed one-half of the services agreed to in event 7
9.paid $4,600 of other operating expenses on account
10.incurred $1,500 of other operating expenses on account
11.Paid $1,200 on the acount payable created in event 10
12.Paid a $1,000 cash dividend to stickholders
Explanation / Answer
Journal (Amount in $)
1. Cash A/c...Dr 12000
To common stock A/c 12000
2. Cash A/c...Dr 4000
To services revenue A/c 4000
3. Accounts Receivable A/c........... Dr. 12000
To services revenue A/c 12000
4. Cash A/c.............Dr. 9000
To Accounts Receivable A/c 9000
5. Supplies A/c..........Dr. 500
To Cash A/c 500
6. Expense A/c............Dr. 400
To Supplies A/c 400
7. Cash a/c........Dr. 1800
To unearned service revenue A/c 1800
8. Unearned Service revenue A/c...............Dr. 700
To service revenue A/c 700
9. Accounts payable A/c............Dr. 4600
TO cash A/c 4600
10. Operating expenses A/c..........Dr. 1500
To Accounts payable A/c 1500
11. Accounts payable A/c............Dr. 1200
TO cash A/c 1200
12. Dividend A/c.......Dr. 1000
To cash A/c 1000
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