Valmont, Inc, experienced the following events in 2012, in its first year of operation. 1. Received $26,000 cash from

Question

Valmont, Inc, experienced the following events in 2012, in its first year of operation. 1. Received $26,000 cash from the issue of common stock. 2. Performed services on account for $46,000. 3. Paid the utility expense of $4,100. 4. Collected $42,000 of the accounts receivable. 5. Recorded $8,600 of accrued salaries at the end of the year. 6. Paid a $2,600 cash dividend to the shareholders. Required: Record the events in general ledger accounts under an accounting equation.

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General Ledger Accounts for the Year Ended December 31, 2012, is shown below: Event Assets = Liabilities + Stockholders' equity Cash + Accounts receivable = Salaries pay + Common stock + Retained earnings Revenue - Expesnes 1 26,000 + 0 = 0 + 26,000 + 0 - 0 2 0 + 46,000 = 0 + 0 + 46,000 - 0 3 -4,100 + 0 = 0 + 0 + 0 - 4,100 4 42,000 + -42,000 = 0 + 0 + 0 - 0 5 0 + 0 = 8,600 + 0 + 0 - 8,600 6 -2,600 + 0 = 0 + 0 + 0 - 2,600 Total 61,300 + 4,000 = 8,600 + 26,000 + 46,000 - 15,300

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Valmont, Inc, experienced the following events in 2012, in its first year of operation

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Event	Assets			=	Liabilities	+	Stockholders' equity
	Cash	+	Accounts receivable	=	Salaries pay	+	Common stock	+	Retained earnings
	Cash	+	Accounts receivable	=	Salaries pay	+	Common stock	+	Revenue	-	Expesnes
1	26,000	+	0	=	0	+	26,000	+	0	-	0
2	0	+	46,000	=	0	+	0	+	46,000	-	0
3	-4,100	+	0	=	0	+	0	+	0	-	4,100
4	42,000	+	-42,000	=	0	+	0	+	0	-	0
5	0	+	0	=	8,600	+	0	+	0	-	8,600
6	-2,600	+	0	=	0	+	0	+	0	-	2,600
Total	61,300	+	4,000	=	8,600	+	26,000	+	46,000	-	15,300