Business

Casey Obrien

5 January, 01:42

Selected transactions for Alvarado Company during its first month in business are presented below. Alvarado's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock, and No. 332 Dividends. a. Journalize the transactions. (Omit explanations.) b. Post the transactions using the standard account form.

(a) General Journal J1

Date Account Titles Ref. Debit Credit

Sept. 1

5

25

30

(b)

Cash No. 101

Date Explanation Ref. Debit Credit Balance

Sept. 1 Invested $10,000 cash in the business in exchange for common stock.

5 Purchased equipment for $12,000 paying $4,000 in cash and the balance on account.

25 Paid $2,400 cash on balance owed for equipment.

30 Declared and paid a $500 cash dividend.

Alvarado's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock, and No. 332 Dividends.