Question

j. Webworks purchases one hundred shares of RST Company for $18 per share in cash. This is considered a trading security.

k. Webworks pays off its salaries payable from January.

l. Webworks is hired to design Web sites for a local photographer and bakery. It is paid $600 in advance.

m. Webworks pays off $11,300 of its accounts payable.

n. Webworks pays Leon a salary of $2,000.

o. Webworks completes the salon Web site and earns the $450 paid in January.

p. RST Company pays Webworks a dividend of $25.

q. Webworks pays taxes of $1,558 in cash.

Required:

A. Prepare journal entries for the above events.

Answer 1

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