Selected transactions for Sunland Corporation during September
2018, its first month in business, are presented below:
Sept. | 1 | Issued common shares in exchange for $20,000 cash. | |
2 | Paid $1,500 cash for rent for the month of September. | ||
5 | Purchased equipment for $9,000, paying $2,100 in cash and the balance on account. | ||
8 | Earned $6,700 in revenue, receiving $1,000 cash and $5,700 on account of services provided. | ||
12 | Incurred $500 in advertising expense on account. | ||
20 | Paid $2,700 for repairs and maintenance expenses. | ||
25 | Paid $5,100 cash on balance owed for equipment. | ||
27 | Incurred and paid income taxes for the month amounting to $1,000. | ||
30 |
Declared and paid a $400 cash dividend. |
Prepare a trial balance at September 30, 2018.
SUNLAND CORPORATION |
||
Debit |
Credit |
|
$ |
$ |
|
Totals |
$ |
$ |
SUNLAND CORPORATION Trial Balance September 30, 2018 |
||
Debit | Credit | |
Cash | $8,200 | |
Accounts receivable | 5,700 | |
Equipment | 9,000 | |
Accounts payable | $2,300 | |
Common stock | 20,000 | |
Dividends paid | 400 | |
Service revenue | 6,700 | |
Rent expense | 1,500 | |
Advertising expense | 500 | |
Repairs and maintenance expense | 2,700 | |
Income tax expense | 1,000 | |
Total | $29,000 | $29,000 |
1. Cash = $20,000-1,500-2,100+1,000-2,700-5,100-1,000-400 = $8,200
2. Accounts payable = 6,900+500-5,100 = $2,300
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