Consider the following information from a company's unadjusted trial balance at December 31, 2018. All accounts have normal balances.
Accounts Receivable: $7,500
Accounts Payable: $650
Cash: $3,700
Service Revenue: $14,500
Common Stock, $2 par, 10,000 authorized: $2,000
Common Stock, additional paid-in capital: $7,000
Equipment, at cost: $12,900
Accumulated depreciation: $2,300
Depreciation Expense: $700
Land: $5,800
Notes Payable, Due 2021: $8,000
Investment Securities: $1,200
Prepaid Rent: $1,400
Rent Expense: $2,400
Retained Earnings, January 1, 2018: $5,850
Salaries and Wages Expense: $7,700
Unearned revenue: $3,000
At year-end, the company accountant realizes that the following transactions have to be recorded:
November 5: Purchase 100 shares for the Treasury at a cost of $7 per share
Perform half of the work customers paid for in advance
December 1: Issue 1,200 shares of common stock at an issue price of $10 per share
December 31: Declare and pay a dividend to common stock outstanding of $0.50 per share