Wednesday 25 July 2012


Exercise 2-12

Selected transactions for Tina Cordero Company during its first month in business are presented below.

Sept. 1 Invested €10,000 cash in the business in exchange for ordinary shares.

         5 Purchased equipment for €12,000 paying €5,000 in cash and the balance on account.

         25 Paid €3,000 cash on balance owed for equipment.

         30 Declared and paid a €500 cash dividend.

Cordero’s chart of accounts shows: No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Share Capital—Ordinary; No. 332 Dividends.

Instructions

(a) Journalize the transactions on page J1 of the journal. (Omit explanations.)

(b) Post the transactions using the standard account form.

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