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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