Chapter 3 In-Class Problems.docx

Chapter 3 In-Class Problems.docx - Accounting Transactions...

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Accounting Transactions: 1. On October 1, cash of $10,000 is invested in Sierra Corporation by investors in exchange for $10,000 of common stock. 2. On October 1, Sierra borrowed $5,000 from Castle Bank by signing a 3-month, 12%, $5,000 note payable. 3. On October 2, Sierra purchased equipment by paying $5,000 cash to Superior Equipment Sales Co. 4. On October 2, Sierra received a $1,200 cash advance from R. Knox, a client. 5. On October 3, Sierra received $10,000 in cash from Copa Company for guide services performed. 6. On October 3, Sierra Corporation paid its office rent for the month of October in cash, $900. 7. On October 4, Sierra paid $600 for a one-year insurance policy that will expire next year on September 30. 8. On October 5, Sierra purchased supplies on account from Aero Supply for $2,500. 9. On October 20, Sierra paid a $500 dividend. 10. Employees have worked two weeks, earning $4,000 in salaries, which were paid on October 26.
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Sierra Corporation General Journal Date Account Debit Credit Sierra Corporation
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Trial Balance October 31, 20xx Debit Credit
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P3-4A Bradley's Miniature Golf and Driving Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred
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  • Spring '08
  • Roussel

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