At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Balance
Cash $42,000
Accounts receivable 25,000
Accounts payable 8,400
Common stock 24,000
Retained earnings 34,600

The following events apply to Oak Consulting for Year 2:

a. Provided $185,000 of services on account.
b. Incurred $45,800 of operating expenses on account.
c. Collected $140,000 of accounts receivable.
d. Paid $120,000 cash for salaries expense.
e. Paid $31,400 cash as a partial payment on accounts payable.
f. Paid a $10,000 cash dividend to the stockholders.

Required:
Write down the beginning of balances and the transactions from Parts a&d to the appropriate accounts.

    Cash                                                  Accounts receivable

    debit              credit                          debit              credit

    42,000                                              25,000

c.  140,000                                       a.   185,000

d.                        120,000                 c.                         140,000  

e.                        31,400                        70,000

    30,600

    Service revenue                               Accounts payable

    debit              credit                          debit              credit

a.                         185,000                                            8,400

    185,000                                      b.                        45,800

       0                     0                        e.   31,400                      

                                                                                    22,800

    Common stock                                 Retained earnings

    debit              credit                          debit              credit

                           24,000                                              34,600

                           24,000                  f.   10,000

                                                                                     19,200

                                                                                      43,800

    Operating expenses                        Salaries expenses

    debit              credit                          debit              credit

b.  45,800                                         d.  120,000                  

                           45,800                                            120,000

       0                      0                                  0                    0                      

in order to determine the balance of the retained earnings account at the end of the year, we must first close all the temporary accounts:

Dr Service revenue 185,000

    Cr Income summary 185,000

Dr Income summary 165,800

    Cr Operating expenses 45,800

    Cr Salaries expense 120,000

Dr Income summary 19,200

    Cr Retained earnings 19,200

answer; the above statement is half right, but mayo was not known as the father of scientific management..so the above is ( w taylor was known as the father of scientific