Selected transactions for A. B. Coors Corporation during its first month in business are presented below.
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1 |
Issued common stock in exchange for $20,000 cash received from investors. |
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5 |
Purchased equipment for $10,000, paying $2,000 in cash and the balance |
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25 |
Paid $5,000 cash on balance owed for equipment. |
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30 |
Paid $500 cash dividend. |
A. B. Coors’s chart of accounts shows: Cash, Equipment, Accounts Payable, Common Stock, and Dividends.
Instructions
(a) Prepare a tabular analysis of the September transactions. The column headings should be: Cash + Equipment =Accounts Payable +Stockholders’ Equity. For transactions affecting stockholders’ equity, provide explanations in the right margin.
(b) Journalize the transactions. Do not provide explanations.
(c) Post the transactions to T accounts.