D) Byron sells services to a customer and agrees to accept 2 6 payment in 30 days. PTS: 1 DIF: Easy REF: CS2-4 OBJ: 2-5 NAT: FN-Reporting | AACSB Communication | APO-06-Recording Transactions 3. Geen's Alternations Shop began business as a corporation in 2009. Several transactions which occurred early in 2009 are described below. Record each transaction in proper journal form, excluding written explanations. A) Jan. 23, 2009 Stockholders invested $70,000 in the business and received shares of common trial as evidence of ownership. B) Feb. 1, 2009 Rent of $1,600 was paid for the of February. C) Feb. 7, 2009 Equipment with a cost of $3,000 was purchased on credit; payment is due in 30 days. D) Feb. 14, 2009 Bills totaling $5,400 were presented to customers for alterations projects completed and delivered; $2,900 was collected immediately and the balance of $2,500 is due within 30 days. E) Feb. 18, 2009 Full payment was made for the equipment purchased on Feb. 7th. F) Feb. 22, 2009 $1,900 was collected from customers with balances due from Feb. 14th. G) Feb. 28, 2009 Employee salaries of $3,300 were paid. ANS: Date Account Debit Credit A) Jan. 23, 2009 Cash 70,000 Common Stock 70,000 B) Feb. 1, 2009 Rent Expense 1,600 Cash 1,600 C) Feb. 7, 2009 Equipment 3,000 Accounts Payable 3,000 D) Feb. 14, 2009 Cash 2,900 Accounts Receivable 2,500 Service Revenue 5,400 E) Feb. 18, 2009 Accounts Payable 3,000 Cash 3,000 F) Feb. 22, 2009 Cash 1,900 Accounts Receivable 1,900 G) Feb. 28, 2009 Salary Expense 3,300 Cash 3,300
D) Byron sells services to a customer and agrees to accept payment in 30 days. 2 6 PTS: 1 DIF: Easy REF: CS2-4 OBJ: 2-5 NAT: FN-Reporting | AACSB Communication | APO-06-Recording Transactions 3. Geen's Alternations Shop began business as a corporation in 2009. Several transactions which occurred early in 2009 are described below. Record each transaction in proper journal form, excluding written explanations. A) Jan. 23, 2009 Stockholders invested $70,000 in the business and received shares of common as evidence of ownership. B) Feb. 1, 2009 Rent of $1,600 was paid for the of February. C) Feb. 7, 2009 Equipment with a cost of $3,000 was purchased on credit; payment is due in 30 days. D) Feb. 14, 2009 Bills totaling $5,400 were presented to customers for alterations projects completed and delivered; $2,900 was collected immediately and the balance of $2,500 is due within 30 days. E) Feb. 18, 2009 Full payment was made for the equipment purchased on Feb. 7th. F) Feb. 22, 2009 $1,900 was collected from customers with balances due from Feb. 14th. G) Feb. 28, 2009 Employee salaries of $3,300 were paid. ANS: Date Account Debit Credit A) Jan. 23, 2009 Cash 70,000 Common Stock 70,000 B) Feb. 1, 2009 Rent Expense 1,600 Cash 1,600 C) Feb. 7, 2009 Equipment 3,000 Accounts Payable 3,000 D) Feb. 14, 2009 Cash 2,900 Accounts Receivable 2,500 Service Revenue 5,400 E) Feb. 18, 2009 Accounts Payable 3,000 Cash 3,000 F) Feb. 22, 2009 Cash 1,900 Accounts Receivable 1,900 G) Feb. 28, 2009 Salary Expense 3,300 Cash 3,300 trial