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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 model
1.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