Journalize the transactions. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. Record journal entries in the order presented in the
problem.)
Post to the ledger accounts. (Post entries in the order of
information presented in the question.)
Prepare a trial balance on October 31, 2014.
Question 3
A tabular analysis of the transactions made during August 2014
by Colaw Company during its first month of operations is
shown below. Each increase and decrease in stockholders’
equity is explained.
Assets
Liabili
=
+
ties
Stockholders’ Equity
Accou
Com
Su Equi nts
Cash + A/R +
+
=
+ mon + Retained Earnings
pp. p. Payab
Stock
le
Reven Expen Divide
–
–
ues
ses
nds
(1 $24,
) 400
(2
–
$24,4
00
$5,1 $3,10
Co
m.
Sto
ck