ACCT 504 - WEEK 3 CASE STUDY: THE COMPLETE ACCOUNTING CYCLE. QUESTION AND ANSWERS. COMPLETE SOLUTIONS.

ACCT 504 - WEEK 3 CASE STUDY: THE COMPLETE ACCOUNTING CYCLE. QUESTION AND ANSWERS. COMPLETE SOLUTIONS. Requirement #1: During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $90,000, in exchange for 9,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $5,500. July 5 Paid the premium on a 1-year insurance policy, $4,800 July 7 Purchased supplies on account from Little Company, $900. July 10 Paid employee salaries, $3,300 July 14 Purchased equipment from Lake Company, $11,500. Paid $1,500 down and the balance was placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1. Note: Use accounts payable for the balance due. July 15 Received cash for plumbing revenue for the first half of July, $7,700 July 19 Made payment on account to Lake Company, $500. July 31 Received cash for plumbing revenue for the last half of July, $8,505 July 31 Declared and paid cash dividends of $600