Matt's Computer Service Entered into the Following Transactions During Year

question 144

Essay

Matt's Computer Service entered into the following transactions during Year 1:
1)Issued stock to investors for $45,000 cash2)Purchased land for $36,000 cash3)Performed services on account for $51,0004)Collected $33,600 from customers on account5)Paid $19,500 cash for operating expenses
Required:a)Draw T-accounts and post the above transactions to the appropriate T-accounts.b)Prepare a balance sheet for Matt's Computer Service for December 31, Year 1.

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Definitions:

Cash Receipt

Documented acknowledgment of the receipt of cash, typically recorded at the time cash is received from customers or other sources.