Week Two Problems and Exercises

ACC/290

University of Phoenix

E3-4

(a) 1.Stockholders invested 20,000 cash in the business.

2.Purchased equipment for 5,000, paying 1,000 in cash and the balance of 4,000 on account.

3.Paid 750 cash for supplies.

4.Earned 9,500 in revenue, receiving 4,100 cash and 5,400 on

account.

5.Paid 1,500 cash on accounts payable.

6.Paid 2,000 cash dividends to stockholders.

7.Paid 800 cash for rent.

8.Collected 450 cash from customers on account.

9.Paid salaries of 3,000.

10.Incurred 300 of utilities expense on account.

(b)Issued common stock20,000

Service revenue 9,500

Dividends (2,000)

Rent expense(800)

Salaries and wages expense (3,000)

Utilities expense(300)

Increase in...