P3. (15 points) Prepare the journal entries and T accounts and financial stateme

Question

P3. (15 points) Prepare the journal entries and T accounts and financial statement for the following 10 items. (15 pts) 1. Issue 1,000 of common stock 2. Borrow 50,000 from the bank 3. Buy equipment of 10,000 for cash 4. Provide 2,000 of services to customes and was paid today 5. Provide 5,000 of services to customes and will be paid next month 6. Make a loan payment of 500 on money borrow in item 2 7. Paid employees 3,000 today 8. Paid rent of 850 today 9. Received payment of 500 from customer in item 5 10. Paid Dividends of 100 today

Explanation / Answer

Date Accounts dr cr 1 Cash 1000 Capital Stock 1000 issued stock to shareholders for cash 2 Cash 50000 Borrowing 50000 3 Equipment 10000 Cash 10000 4 Cash 2000 Service Revenue 2000 5 Accounts Receivable 5000 Service Revenue 5000 6 Interest Expense 500 Cash 500 7 Wages Expense 3000 Cash 3000 8 Rent Expense 850 Cash 850 9 Cash 500 Accounts Receivable 500 10 Dividend 100 Cash 100 Cash 1 1000 10000 3 2 50000 500 6 4 2000 3000 7 9 500 850 8 100 10 39050 Capital stock 1000 1 Borrowing 2 50000    Equipment    10000 3 Service Revenue 4 2000 5 5000 7000    Accounts receivable 9 5000 5000 5 Interest expense 500 6 Wages expense 3000 7 Rent expense    850 8 Dividend 100 10

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