Q3TI

Question

EMB Consulting Services had the following transactions for the month of November. Journalize the transactions and include an explanation with each entry. 


Nov. 1 The business received \(10,000 cash and issued common stock. 


15 Purchased office supplies on account, \)400. 


18 Paid advertising bill, \(150. 


20 Received \)1,000 from customers for services rendered. 


28 Cash dividends of $500 were paid to stockholders

Step-by-Step Solution

Verified
Answer

Dividends are profits distributed to the shareholders and required entries are passed.

1Step 1: Definition of Dividends

The dividends are defined as  the part of the profits of the business which are distributed among the shareholders or the owners of the company.

2Step 2: Journal Entries