The Following Transactions Occurred During Klein Corporation's First Month of Operations,June

question 115

Essay

The following transactions occurred during Klein Corporation's first month of operations,June 2010.Journalize the transactions in a general journal,post the transactions to the appropriate T-Accounts,and prepare a trial balance.
(a.) Issued $20,000 of capital stock for cash.
(b.) Purchased $250 of office supplies on account.
(c.) Borrowed $1,000 from the bank and signed a note payable for that amount
(d.) Billed a client $450 for services rendered.
(e.) Received and immediately paid the utility bill for the month, $270.
(f.) Performed a service and immediately collected $200.
(g.) Paid for the office supplies purchased in transaction b.
(h.) Received $150 from a client who had previously been billed.
(i.) Recorded, but did not pay, the telephone bill for the month, $160.
(j.) Declared a paid a $300 dividend to stockholders.
(k.) Received a $500 deposit from a client for work to be performed next month.

---

Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained and not distributed to shareholders as dividends.

Accumulated Profit

The total amount of net income retained in a company over its entire history, not distributed as dividends.

Liquidation

The process of converting assets into cash or cash equivalents by selling them.

Dividends

Awards made by a business to its shareholders, usually resulting from the disbursement of profits.