(Learning Objective 2, 3: Analyzing and recording transactions) Blanton Glass Etching, Inc., owns shops in outlet malls. The business completed the following transactions during June:
|
June 1 |
Received cash of $25,000 and issued common stock to the stockholders. |
|
2 |
Paid $10,000 cash and signed a $30,000 note payable to purchase land. |
|
7 |
Received $15,000 cash from service revenue and deposited that amount in the bank. |
|
10 |
Purchased supplies on account, $1,700. |
|
15 |
Paid employees’ salaries, $2,800, and rent on a shop, $1,800. |
|
15 |
Paid advertising expense, $1,200. |
|
16 |
Paid $800 on account. |
|
17 |
Declared and paid a cash dividend of $3,000. |
Blanton uses the following accounts: Cash, Supplies, Land, Accounts Payable, Notes Payable, Common Stock, Dividends, Service Revenue, Salary Expense, Rent Expense, and Advertising Expense.
Required
1. Journalize each transaction. Explanations are not required.
2. Prepare T accounts for Cash, Accounts Payable, and Notes Payable. Post to these 3 accounts.
3. After these transactions, how much cash does the business have? How much does it owe in total liabilities?