Question

At the beginning of Year 1, Oak Consulting had the following normal balances in its accounts:

Account	Balance
Cash	$	29,200
Accounts receivable		16,400
Accounts payable		12,200
Common stock		20,200
Retained earnings		13,200

The following events apply to Oak Consulting for Year 1:

1. Provided $74,500 of services on account.
2. Incurred $3,000 of operating expenses on account.
3. Collected $50,000 of accounts receivable.
4. Paid $36,000 cash for salaries expense.
5. Paid $13,680 cash as a partial payment on accounts payable.
6. Paid a $8,600 cash dividend to the stockholders.

b & d. Post the beginning balances and the transactions from Parts a&d to the appropriate accounts.

	Cash Accounts Receivable Beg. Bal       Beg. Bal       End. Bal End. Bal Accounts Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Dividends Beg. Bal Beg. Bal End. Bal Bal Service Revenue Operating Expenses Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Beg. Bal End. Bal

Answer 1

Cash					Accounts Receivable
Beg. Bal	29200	Salaries expense	36000		Beg. Bal	16400	Cash	50000
Account receivable	50000	Accont payable	13680		revenue	74500
		Dividend	8600
	79200		79200			90900		90900
End. Bal	20920				End. Bal	40900
Accounts Payable					Common Stock
Beg. Bal			12200		Beg. Bal			20200
Cash	13680	Operating expense	3000
	15200		15200
End. Bal			1520		End. Bal			20200
Retained Earnings					Dividends
Beg. Bal			13200		Beg. Bal	0
					Cash	8600
End. Bal			13200		Bal	8600
Service Revenue					Operating Expenses
Beg. Bal			0		Beg. Bal	0
		Account receivable	74500		Account payable	3000
End. Bal			74500		End. Bal	3000
Salaries Expense
Beg. Bal	0
Cash	36000
End. Bal	36000