Russell-Logan Technology engaged in the following transactions during the month of August, its first month of operations.

Problem 1

Russell-Logan Technology engaged in the following transactions during the month of August, its first month of operations.
8/1 Received $36,000 and issued common stock
8/2 Purchased $800 of office supplies on account
8/4 Paid $8,000 of office supplies on account.
8/6 Performed service for customers and received cash $6,000
8/9 Paid $300 on accounts payable
8/17 Paid rent expense of 1,500
8/18 Paid utilities expense of $400
8/19 Borrowed $5,000 from FAMU Credit Union
8/20 Performed service for customers on account, $2,300
8/21 Paid salary expense of 2,600
8/24 Received $1,200 cash from customers on account
8/27 Paid cash dividends for $1,500

A) Journalize the transaction for Rusell-Logan Technology for the month of August.
B) Post to the T-Accounts
C) Prepare a Trail Balance
D) Prepare the Income Statement

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Problem 2

The following transactions occurred during a recent year
a. Owners invested cash in business
b. Purchased equipment for cash
c. Incurred expense, paid cash
d. Earned revenue, on credit
e. Borrowed cash from local bank
f. Incurred expense, on credit
g. Collected cash from customers on account
h. Earned revenue, collected cash
i. Declared and paid cash dividends
j. Paid cash on account

For each of the transactions, complete the tabulation, indicating the effect

• for increase
  _ for decrease
  NE if there is no effect

Asset Liabilities Equity Revenues Expense Income

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Solution Preview
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Problem 1

Russell-Logan Technology engaged in the following transactions during the month of August, its first month of operations.
8/1 Received $36,000 and issued common stock
8/2 Purchased $800 of office supplies on account
8/4 Paid $8,000 of office supplies on account.
8/6 Performed serive for customers and received cash $6,000
8/9 Paid $300 on accounts payable
8/17 Paid rent expense of 1,500
8/18 Paid utilities expense of $400
8/19 Borrowed $5,000 from FAMU Credit Union
8/20 Performed service for customers on account, $2,300
8/21 Paid salary expenseof 2,600
8/24 Received $1,200 cash from customers on account …