Question: Selected transactions for Therow Corporation during its first month in business are presented below. Sept.
1 Issued common stock in exchange for $20,000 cash received from investors.
5 Purchased equipment for $9,000, paying $3,000 in cash and the balance on account.
8 Performed services on account for $18,000.
14 Paid salaries of $1,200.
25 Paid $4,000 cash on balance owed for equipment.
30 Paid $500 cash dividend. Therow's chart of accounts shows Cash, Accounts Receivable, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, and Salaries and Wages Expense.
Instructions: (a) Prepare a tabular analysis of the September transactions. The column headings should be Cash + Accounts Receivable + Equipment = Accounts Payable + Common Stock + Revenues - Expenses - Dividends. For transactions affecting stockholders' equity, provide explanations in the right margin.
(b) Journalize the transactions. Do not provide explanations.
(c) Post the transactions to T-accounts.