(Learning Objective 3: Analyze the impact of business transactions on accounts)Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture,Accounts Payable, Common Stock, Dividends, Service Revenue, Salary Expense, and RentExpense. Record the following transactions directly in the T-accounts without using a journal.Use the letters to identify the transactions. Determine the ending balance in each account.a. Brian Durham opened a law firm by investing $25,500 cash and office furniture with afair value of $9,400. Organized as a professional corporation, the business issued common stock to Durham.b. Paid monthly rent of $1,500.c. Purchased office supplies on account, $700.d. Paid employees’ salaries of $2,900.e. Paid $250 of the account payable created in transaction c.f. Performed legal service on account, $11,000.g. Declared and paid dividends of $2,000.
(Learning Objective 3: Analyze the impact of business transactions on accounts)
Set up the following T-accounts: Cash,
Accounts Payable, Common Stock, Dividends, Service Revenue, Salary Expense, and Rent
Expense. Record the following transactions directly in the T-accounts without using a journal.
Use the letters to identify the transactions. Determine the ending balance in each account.
a. Brian Durham opened a law firm by investing $25,500 cash and office furniture with a
fair value of $9,400. Organized as a professional corporation, the business issued common stock to Durham.
b. Paid monthly rent of $1,500.
c. Purchased office supplies on account, $700.
d. Paid employees’ salaries of $2,900.
e. Paid $250 of the account payable created in transaction c.
f. Performed legal service on account, $11,000.
g. Declared and paid dividends of $2,000.
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