Question

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

Account	Balance
Cash	$	32,900
Accounts receivable		15,900
Accounts payable		10,800
Common stock		24,200
Retained earnings		13,800

The following events apply to Oak Consulting for Year 1:

1. Provided $68,000 of services on account.
2. Incurred $3,000 of operating expenses on account.
3. Collected $49,100 of accounts receivable.
4. Paid $35,300 cash for salaries expense.
5. Paid $12,420 cash as a partial payment on accounts payable.
6. Paid a $8,300 cash dividend to the stockholders.

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

Answer 1

                                                                                    Cash Account

Date	Particulars	Amount	Date	Particulars	Amount
Year 1	Balance b/d	$32900	Year 1	Salary Expense	$35300
	Account Receivable	$49100		Account Payable	$12420
				Retained Earnings	$8300
			Year 1	Balance c/d	$25980
		$82000			$82000
Year 2	Balance b/d	$25980

                                                                      Account Receivable Account

Date	Particulars	Amount	Date	Particulars	Amount
Year 1	Balance b/d	$15900	Year 1	Cash account	$49100
	Service Revenue	$68000	Year 1	Balance c/d	$34800
		$83900			$83900
Year 2	Balance b/d	$34800

                                                                         Account Payable Account

Date	Particulars	Amount	Date	Particulars	Amount
Year 1	Cash Account	$12420	Year 1	Balance b/d	$10800
Year 1	Balance c/d	$1380		Operating Expense	$3000
		$13800			$13800
			Year 2	Balance b/d	$1380

                                                                         Common Stock Account

Date	Particulars	Amount	Date	Particulars	Amount
Year 1	Balance c/d	$24200	Year 1	Balance b/d	$24200
		$24200			$24200
			Year 2	Balance b/d	$24200

                                                                   

                                                                        Retained Earnings Account

Date	Particulars	Amount	Date	Particulars	Amount
Year 1	Cash Dividend	$8300	Year 1	Balance b/d	$13800
Year 1	Balance c/d	$5500
		$13800			$13800
			Year 2	Balance b/d	$5500