Question

Selected transactions for Monty Corp. during its first month in business are presented below. Sept. 1 Issued common stock in exchange for $21,300 cash received from investors. 5 Purchased equipment for $8,520, paying $3,080 in cash and the balance on account. 8 Performed services on account for $18,900. 14 Paid salaries of $2,100. 25 Paid $3,440 cash on balance owed for equipment. 30 Paid $750 cash dividend. Complete a tabular analysis of the September transactions. For transactions affecting stockholders’ equity, provide explanations in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for example.

Answer 1

	Assets			Liabilities	Stockholders' Equity
						Retained Earnings
	Cash	Accounts Receivable	Equipment	Accounts Payable	Common Stock	Revenues	Expenses	Dividends
1	21300				21300				Issued stock
5	-3080		8520	5440
8		18900				18900			Service revenue
14	-2100						-2100		Salaries and wages expense
25	-3440			-3440
30	-750							-750	Dividends
Totals	11930	18900	8520	2000	21300	18900	-2100	-750