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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 $13,200 requesting payment within 30 days. (The appropriate revenue account is entitled Drafting Fees Earned.)
May 17 Declared a cash dividend of $2,400. The dividend will not be paid until June 25.
May 29 Received a $5,400 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.)
June 4 Received full payment from Spangler Construction Company for the invoice sent on April 5.
June 10 Paid Bob Needham, CPA, for the bill received on May 29.
June 25 Paid the cash dividend declared on May 17.
Required:
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 income.
Answers: 2
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Shown below are selected transactions of the architectural firm of Baxter, Claxter, and Stone, Inc....
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