on december 1 bob wonder began an auto repair shop wonders quality automotive the fo 3387107

On December 1, Bob Wonder began an auto repair shop, Wonders Quality Automotive. The following transactions occurred during December: Dec. 1 Wonder contributed $55,000 cash to the business in exchange for shares of common stock. 1 Purchased $9,000 of equipment paying cash. 1 Paid $1,000 for a four-month insurance policy starting on December 1. 9 Paid $16,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, $2,900. 19 Borrowed $30,000 from the bank for business use. Wonder signed a note payable to the bank in the name of the corporation. The note is due in five years. 22 Paid $1,200 for advertising expenses. 26 Paid $500 on account. 28 The business received a bill for utilities to be paid in January, $230. 31 Revenues earned during the month included $20,500 cash and $3,300 on account. 31 Paid employees salaries $3,100 and building rent $1,000. Record as a compound entry. 31 The business received $1,050 for auto screening services to be performed next month. 31 Cash dividends of $3,500 were paid to stockholders. The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation—Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable; Common Stock; Retained Earnings; Dividends; Income Summary; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; Advertising Expense; Supplie

 

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