b Write a onesentence description of each transaction Shown

b. Write a one-sentence description of each transaction. Shown below are selected transactions of the architectural firm of Baxter, Claxter, and Stone, Inc. April 5 Prepared building plans for Spangler Construction Company. Sent Spangler an invoice for $11,000 requesting payment within 30 days. (The appropriate revenue account is entitled Drafting Fees Earned.) nd May 17 Declared a cash dividend of $2,000. The dividend will not be paid until June 25 Received a $4,500 bill from Bob Needham, CPA, for accounting services performed during May. Payment is due by June 10. (The appropriate expense account is entitled Professional Expenses.) Received full payment from Spangler Construction Company for the invoice sent on April 5. May 29 June 4 June 10 Paid Bob Needham, CPA, for the bill received on May 29 June 25 Paid the cash dividend declared on May 17. a. Prepare journal entries to record the transactions in the firm\'s accounting records. b. Identify any of the above transactions that will not result in a change in the company\'s net ncome.

Solution

Ansswer =a Journal Entries Date Account Title and explanation Debit Credit Apr-05 Account Receivable $                  11,000     To Revenue Account $                     11,000 (To Record the service provided on credit) May, 17 Dividend Account $                     2,000       To Dividend Payable $                       2,000 (To Record the dividend expenses ) May , 29 Professional Fees Expenses $                     4,500    To Account Payable $                       4,500 (to Record the accounting service expenses) June, 04 Cash $                  11,000     To Account Receivable $                     11,000 (To Record the Cash Received ) June, 10 Account Payable $                     4,500       To Cash $                       4,500 (To Record the account payable in cash) June, 25 Dividend Payable $                     2,000       To Cash $                       2,000 (To Record the payment of cash) Answer = B: Dividend payment is the apprpration of the net income after tax, payment of dividend will not affes the net income