The following events apply to Montgomery Company for Year 1, its first year of operation: 1. Received cash of $42,000 from the issue of common stock. 2. Performed $61,000 of services on account. 3. Incurred $9.100 of other operating expenses on account. 4. Paid $34,000 cash for salaries expense. 5. Collected $41,000 of accounts recelvable. 6. Paid a $4,300 dividend to the stockholders. 7. Performed $10,800 of services for cash. 8. Paid $6,800 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c. & d. Determine the amount of total assets at the end of Year 1 , and the amount of net income for Year 1. Complete this question by entering your answers in the tabs below, Record the preceding transactions in general journal form. Note: If no. entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet < A Incurred $9,100 of other operating expenses on account. Note: Enter debits before credits. Journal entry worksheet < A B Note: Enter debits before credits. Journal entry worksheet Collected $41,000 of accounts receivable. Note: Enter debits before credits. Journal entry worksheet < A B Note: Enter debits before credits. Journal entry worksheet < A B C D B Performed $10,800 of services for cash. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Record the preceding transactions in general journal form. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acco Journal entry worksheet E F G H Received cash of $42,000 from the issue of common stock. Note: Enter debits before credits.
Journal entry worksheet:
A. Incurred $9,100 of other operating expenses on account.
Debit: Operating Expenses $9,100
Credit: Accounts Payable $9,100
B. Paid $34,000 cash for salaries expense.
Debit: Salaries Expense $34,000
Credit: Cash $34,000
C. Paid $6,800 of the accounts payable.
Debit: Accounts Payable $6,800
Credit: Cash $6,800
D. Received cash of $42,000 from the issue of common stock.
Debit: Cash $42,000
Credit: Common Stock $42,000
E. Performed $61,000 of services on account.
Debit: Accounts Receivable $61,000
Credit: Service Revenue $61,000
F. Collected $41,000 of accounts receivable.
Debit: Cash $41,000
Credit: Accounts Receivable $41,000
G. Paid a $4,300 dividend to the stockholders.
Debit: Dividends $4,300
Credit: Cash $4,300
H. Performed $10,800 of services for cash.
Debit: Cash $10,800
Credit: Service Revenue $10,800
No journal entry required for transaction/event.
Recording the preceding transactions in general journal form:
Date | Account | Debit | Credit
-----------------------------------------------------
No journal entry required.
Jan. 1 | Operating Expenses | $9,100 |
| Accounts Payable | | $9,100
Jan. 1 | Salaries Expense | $34,000 |
| Cash | | $34,000
Jan. 1 | Accounts Payable | $6,800 |
| Cash | | $6,800
Jan. 1 | Cash | $42,000 |
| Common Stock | | $42,000
Jan. 1 | Accounts Receivable | $61,000 |
| Service Revenue | | $61,000
Jan. 1 | Cash | $41,000 |
| Accounts Receivable | | $41,000
Jan. 1 | Dividends | $4,300 |
| Cash | | $4,300
Jan. 1 | Cash | $10,800 |
| Service Revenue | | $10,800
No journal entry required.
To record the preceding transactions in general journal form, we will need to create journal entries for each transaction. Here are the journal entries for the given transactions:
A. Incurred $9,100 of other operating expenses on account.
Date: Year 1
Accounts Debit Credit
Operating Expenses $9,100
Accounts Payable $9,100
B. Collected $41,000 of accounts receivable.
Date: Year 1
Accounts Debit Credit
Cash $41,000
Accounts Receivable $41,000
C. Performed $10,800 of services for cash.
Date: Year 1
Accounts Debit Credit
Cash $10,800
Service Revenue $10,800
D. Received cash of $42,000 from the issue of common stocks.
Date: Year 1
Accounts Debit Credit
Cash $42,000
Common Stock $42,000
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