Question

Required information Exercise 3-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 3-1, 3-2, 3-3, 3-4 [The following information applies to the questions displayed below.) At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 42,000 25,000 8,400 24,000 34,600 The following events apply to Oak Consulting for Year 2: 1. Provided $185,000 of services on account. 2. Incurred $45,800 of operating expenses on account. 3. Collected $140,000 of accounts receivable. 4. Paid $120,000 cash for salaries expense. 5. Paid $31,400 cash as a partial payment on accounts payable. 6. Paid a $10,000 cash dividend to the stockholders.

Answer 1

Requirement:

Cash
Beg.bal	$    42,000	4	$ 120,000
3	$ 140,000	5	$    31,400
		6	$    10,000
End.bal	$   20,600
Accounts payable
5	$    31,400	Beg.bal	$      8,400
		2	$    45,800
		End.bal	$   22,800
Accounts receivable
Beg.Bal	$    25,000	3	$ 140,000
1	$ 185,000
End.bal	$   70,000
Operating expenses
2	$    45,800
End.bal	$   45,800
Retained earnings
		Beg.bal	$    34,600
		End.bal	$   34,600
Common stock
		Beg.bal	$    24,000
		End.bal	$   24,000
Service revenue
		1	$ 185,000
		End.bal	$ 185,000
Salaries expense
4	$ 120,000
End.bal	$ 120,000
Dividend
6	$    10,000
End bal	$   10,000