Brown Consulting Services organized as a corporation on January 18 and engaged in the followingtransactions during its first two weeks of operation:Jan. 18 Issued capital stock in exchange for $30,000 cash.Jan. 22 Borrowed $20,000 from its bank by issuing a note payable.Jan. 23 Paid $100 for a radio advertisement aired on January 24.Jan. 25 Provided $1,000 of services to clients for cash.Jan. 26 Provided $2,000 of services to clients on account.Jan. 31 Collected $800 cash from clients for the services provided on January 26.a. Record each of these transactions. b. Determine the balance in the Cash account on January 31. Be certain to state whether the bal-ance is debit or credit.

Brown Consulting Services organized as a corporation on January 18 and engaged in the followingtransactions during its first two weeks of operation:Jan. 18 Issued capital stock in exchange for $30,000 cash.Jan. 22 Borrowed $20,000 from its bank by issuing a note payable.Jan. 23 Paid $100 for a radio advertisement aired on January 24.Jan. 25 Provided $1,000 of services to clients for cash.Jan. 26 Provided $2,000 of services to clients on account.Jan. 31 Collected $800 cash from clients for the services provided on January 26.a. Record each of these transactions. b. Determine the balance in the Cash account on January 31. Be certain to state whether the bal-ance is debit or credit.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 56P

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