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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 7
Short Comprehensive Problem
Clown Around, Inc., provides party entertainment for children of all ages. The company's trial balance dated February 1, 2011 , is shown below.
Clown Around engaged in the following transactions in February:
a. Record the company's February transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry.
b. Post each entry to the appropriate ledger accounts (use the T account format as illustrated in Exhibit 3-8 on page 108).
c. Prepare a trial balance dated February 28, 2011. (Hint: Retained Earnings will be reported at the same amount as it was on February 1. Accounting for changes in the Retained Earnings account resulting from revenue, expense, and dividend activities is discussed in Chapter 5.)
d. Will the $100 dividend paid February 28 decrease the company's income? Explain.
Clown Around, Inc., provides party entertainment for children of all ages. The company's trial balance dated February 1, 2011 , is shown below.
Clown Around engaged in the following transactions in February: a. Record the company's February transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry.b. Post each entry to the appropriate ledger accounts (use the T account format as illustrated in Exhibit 3-8 on page 108).
c. Prepare a trial balance dated February 28, 2011. (Hint: Retained Earnings will be reported at the same amount as it was on February 1. Accounting for changes in the Retained Earnings account resulting from revenue, expense, and dividend activities is discussed in Chapter 5.)
d. Will the $100 dividend paid February 28 decrease the company's income? Explain.
Explanation
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b. Ledger Accounts:
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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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