Professional Documents
Culture Documents
Transaction Analysis
(10-15 min.)
TO:
Home Office
FROM:
Store Manager
E 2-13
During the first week, I borrowed $170,000 on a note payable. I used the stores beginning cash plus the borrowed money to
purchase land, a building, copy equipment, and supplies. After all these transactions, the stores balance sheet appears as
follows:
The Gap
Ottawa Store
Balance Sheet
Date
ASSETS
Cash
Inventory
Store fixtures
Land
Building
LIABILITIES
$ 10,000
40,000
50,000
40,000
130,000
Note payable
$170,000
SHAREHOLDERS EQUITY
Common shares
100,000
Total liabilities and
________
Chapter 2 Transaction Analysis
Copyright 2012 Pearson Canada Inc.
Total assets
$270,000
100,000
Cash
50,000
40,000
10,000
(10-15 min.)
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
No effect on total assets. Increase in cash offsets the decrease in accounts receivable.
No effect (a personal transaction)
No effect on total assets. Increase in cash offsets the decrease in land.
Increased assets (cash)
No effect on total assets. Increase in land offsets the decrease in cash.
Increased assets (cash)
Decreased assets (cash)
Increased assets (equipment)
Increased assets (supplies)
Decreased assets (cash)
E 2-15
(10-20 min.)
E 2-16
Req. 1
Analysis of Transactions
ASSETS
Date
Cash
Mar. 6
9
12
15
15-31
15-31
31
31
31
Bal.
50,000
(30,000)
Accounts
Receivable +
=
Dental
Supplies +
3,000
Not a transaction of the business.
5,000
5,000
(1,400)
(1,000)
(300)
(250)
10,000
(2,000)
30,300
5,000
2,750
LIABILITIES
Land =
Accounts
Payable +
SHAREHOLDERS EQUITY
Note
Payable +
Common
Shares +
Retained
Earnings
50,000
30,000
Issued shares
3,000
10,000
(1,400)
(1,000)
(300)
(250)
30,000
Type of Shareholders
Equity Transaction
(2,000)
1,000
10,000
10,000
50,000
$68,050
$68,050
NOTE: The supplies had been paid for in the $3,000 purchase, therefore not a debit to cash.
7,050
Service revenue
Salary expense
Rent expense
Utilities expense
Supplies Expense
E 2-16
(continued)
Req. 2
a. $68,050
b. $5,000
c. $11,000 ($1,000 + $10,000)
d. $57,050 ($68,050 $11,000, or $50,000 + $7,050)
e. $7,050 (Revenue, $10,000 minus total expenses of $2,950, equals net income, $7,050.)
E 2-18
(10-20 min.)
Req. 1 (journal entries)
Journal
DATE
Oct.
17
DEBIT
CREDIT
Cash
Common Shares...............................................................
Issued common shares to owner.
25,000
Office Supplies........................................................................
Accounts Payable.............................................................
Purchased office supplies on account.
800
Land
Cash.................................................................................
Paid cash for land.
20,000
Cash........................................................................................
Service Revenue..............................................................
Performed services for cash.
5,000
Accounts Payable....................................................................
Cash.................................................................................
Paid cash on account.
100
Accounts Receivable...............................................................
Service Revenue..............................................................
Performed service on account.
1,500
25,000
800
20,000
5,000
100
1,500
23
Cash........................................................................................
Accounts Receivable........................................................
Received cash on account.
1,000
31
Salary Expense.......................................................................
Rent Expense..........................................................................
Cash.................................................................................
Paid cash expenses.
1,000
500
1,000
1,500
(20-30 min.)
E 2-19
Req. 1
Cash
Oct.
1
6
23
Oct. 31
Accounts Receivable
25,000 Oct. 4
5,000
9
1,000
31
9,400
20,000
100
1,500
Oct. 17
Oct. 31
Office Supplies
Oct. 2
Oct. 31
800
800
Oct. 4
Oct. 31
800
700
Oct. 1
Oct. 31
Service Revenue
Salary Expense
6
17
Oct. 31
20,000
20,000
Common Shares
100 Oct. 2
Oct. 31
Oct.
5,000
1,500
6,500
Oct. 31
Oct. 31
1,000
1,000
Rent Expense
Oct. 31
Oct. 31
1,000
Land
Accounts Payable
Oct. 9
1,500 Oct. 23
500
500
500
25,000
25,000
(continued)
Req. 2
Perfect Printers, Inc.
Trial Balance
October 31, 2011
ACCOUNT
Cash...........................................................
Accounts receivable...................................
Office supplies............................................
Land...........................................................
Accounts payable.......................................
Common shares.........................................
Service revenue.........................................
Salary expense..........................................
Rent expense.............................................
Total...........................................................
DEBIT
$ 9,400
500
800
20,000
1,000
500
$32,200
CREDIT
$ 700
25,000
6,500
$32,200
Req. 3
Total assets ($9,400 + $500 + $800 + $20,000).. $30,700
Total liabilities
(700)
Total shareholders equity ($25,000 + $6,500
$1,000 $500)
$30,000
E 2-19
(10-20 min.)
Req. 1
Victoria Garden Care Ltd.
Trial Balance
Sept. 30, 2011
ACCOUNT
Cash...........................................................
Accounts receivable...................................
Equipment..................................................
Accounts payable.......................................
Note payable..............................................
Common shares.........................................
Retained earnings......................................
Dividends...................................................
Service revenue.........................................
Salary expense..........................................
Utilities expense.........................................
Delivery expense........................................
Total...........................................................
DEBIT
$ 9,000
17,500
29,000
CREDIT
6,000
8,000
1,400
300
$71,200
$ 4,300
13,000
8,500
21,400
24,000
$71,200
Req. 2
Victoria Garden Care Ltd.
Income Statement
For the Month Ended Sept. 30, 2011
Service revenue................................................
Salary expense.................................................
$8,000
Utilities expense................................................
1,400
Delivery expense...............................................
300
Total expenses..................................................
Net income........................................................
$24,000
9,700
$14,300
E 2-21
(15-25 min.)
Sams Deli Inc.
Trial Balance
October 31, 2011
ACCOUNT
Cash...........................................................
Accounts receivable...................................
Inventory....................................................
Supplies.....................................................
Land...........................................................
Accounts payable.......................................
Common shares.........................................
Sales revenue............................................
Salary expense..........................................
Insurance expense.....................................
Utilities expense.........................................
Rent expense.............................................
Total...........................................................
DEBIT
$ 5,200*
12,000*
17,000
600
55,000
1,700
1,000
900*
800
$94,200
CREDIT
$13,100*
49,000*
32,100
_______
$94,200
_____
*Explanations:
Cash: $4,200 + $1,000 = $5,200
Accounts Receivable: $13,000 $1,000 = $12,000
Accounts Payable: $12,000 + $1,000 $100 + $200 = $13,100
Common Shares: $47,900 + $1,100 = $49,000
Utilities Expense: $700 + $200 = $900
E 2-22
(20-30 min.)
E 2-25
Reqs. 1 and 3
Cash
Jan. 2
9
5,000
800
Bal.
2,100
Accounts Receivable
Jan. 2
3
12
500
3,000
200
Jan. 18
Supplies
Jan. 5
Equipment
900
Jan. 3
Furniture
Jan. 4
1,700
3,000
Accounts Payable
6,000
Jan. 4
5
Bal.
Common Shares
Jan. 2
Jan. 12
6,900
Dividends
5,000
Service Revenue
Rent Expense
Jan. 9
18
800
1,700
Bal.
2,500
Utilities Expense
6,000
900
Jan. 2
500
Salary Expense
200
(continued)
Req. 2
10
E 2-25
Journal
DATE
Jan.
DEBIT
CREDIT
Cash
Common Shares......................................................
5,000
Rent Expense................................................................
Cash.........................................................................
500
Equipment......................................................................
Cash.........................................................................
3,000
Furniture.........................................................................
Accounts Payable.....................................................
6,000
Supplies.........................................................................
Accounts Payable.....................................................
900
Cash..............................................................................
Service Revenue......................................................
800
12
Utilities Expense............................................................
Cash.........................................................................
200
18
Accounts Receivable......................................................
Service Revenue......................................................
1,700
5,000
500
3,000
6,000
900
800
200
1,700
Req. 4
Web Marketing Services Inc.
Trial Balance
January 18, 2011
ACCOUNT
Cash............................................................
Accounts receivable....................................
Supplies......................................................
Equipment...................................................
Furniture......................................................
Accounts payable........................................
Common shares..........................................
Dividends....................................................
DEBIT
$ 2,100
1,700
900
3,000
6,000
CREDIT
$ 6,900
5,000
11
Service revenue..........................................
Rent expense..............................................
Utilities expense..........................................
Salary expense............................................
Total............................................................
12
500
200
$14,400
2,500
$14,400
al.
al.
Problems
Group A
(45-60 min.)
P 2-50A
Req. 1
ASSETS
Accounts
Receivable
Cash
+ +
1,300
1,000
5,000
7,600
(4,000)
1,000
(900)
(300)
(2,000)
7,700
(1,000)
2,500
____
2,500
Supplies
+
1,500
____
1,500
$23,700
Analysis of Transactions
= LIABILITIES + SHAREHOLDERS EQUITY
Accounts Common
Payable
Shares Retained
Type of Shareholders
Land = +
+
Earnings
Equity Transaction
12,000
8,000
4,000
2,300
5,000
Issued shares
7,600 Service revenue
(4,000)
1,500
12,000
5,500
9,000
2,500
(900)
(300)
(2,000)
9,200
Service revenue
Rent expense
Advertising expense
Dividends
$23,700
13
(continued)
P 2-50A
Req. 2
Blythe Spirit Consulting, Inc.
Income Statement
For the Month Ended June 30, 2011
Revenues:
Service revenue ($7,600 + $2,500)...............................
Expenses:
Rent expense................................................................
Advertising expense......................................................
Total expenses..............................................................
Net income.........................................................................
$10,100
$900
300
_1,200
$ 8,900
Req. 3
Blythe Spirit Consulting, Inc.
Statement of Retained Earnings
For the Month Ended June 30, 2011
Retained earnings, May 31, 2011..................................................
Add:
Net income for the month.............................................
Less:
Dividends.....................................................................
Retained earnings, June 30, 2011.................................................
$2,300
8,900
11,200
(2,000)
$9,200
Req. 4
ASSETS
Cash.................................................
Accounts receivable..........................
Supplies............................................
Land.................................................
Total assets.......................................
14
$ 5,500
9,000
9,200
18,200
$23,700
15
Cash
Common Shares..............................................................
5,000
b.
Cash.......................................................................................
Service Revenue..............................................................
7,600
c.
Accounts Payable...................................................................
Cash.................................................................................
4,000
d.
Supplies..................................................................................
Accounts Payable.............................................................
1,500
e.
Cash.......................................................................................
Accounts Receivable........................................................
1,000
f.
Accounts Receivable..............................................................
Service Revenue..............................................................
2,500
g.
Rent Expense.........................................................................
Advertising Expense...............................................................
Cash.................................................................................
900
300
Dividends................................................................................
Cash.................................................................................
2,000
h.
16
DEBIT
CREDIT
5,000
7,600
4,000
1,500
1,000
2,500
1,200
2,000
(continued)
P 2-51A
Reqs. 2 and 3
Accounts
Receivable
Cash
1,300
5,000
7,600
1,000
7,700
4,000
1,200
2,000
Accounts
Payable
4,000
1,000
2,500
2,500
Common Shares
8,000
1,500
5,500
Service
Revenue
7,600
2,500
10,100
1,000
Supplies
1,500
1,500
900
900
12,000
12,000
Retained
Earnings
4,000
5,000
9,000
Rent Expense
Land
Dividends
2,300
2,300
2,000
2,000
Advertising
Expense
300
300
The balances of all the accounts Cash through Common Shares agree with the ending
balances obtained in Problem 2-50A.
17
(40-50 min.)
Req. 1
Classification of Transactions
Sept. 4
18
b
5
10
11
12
18
21
25
30
P 2-52A
(continued)
P 2-52A
Req. 2
Analysis of Transactions
ASSETS
Date
Cash +
Accounts
Receivable+
=
Supplies +
Office
Furniture =
LIABILITIES
Accounts
Payable +
SHAREHOLDERS EQUITY
Common
Shares +
Retained
Earnings
Type of Shareholders
Equity Transaction
Sept. 4*
5
6
7
10*
11*
12**
18
21
25
28
Bal.
_____
50,000
(300)
(20,000)
50,000
25,000
5,000
10,000
(2,500)
(4,000)
(2,000)
21,200
Issued shares
300
10,000
Service revenue
(4,000)
(2,000)
4,000
Rent expense
Dividends
(2,500)
10,000
___
300
$56,500
25,000
2,500
50,000
$56,500
19
(continued)
P 2-52A
Req. 3
a.
The business has $21,200 in cash. The cash balance takes into consideration all amounts received from all
sources, including cash received from the issuance of shares. Share issuances go into the Common Shares
account, which has nothing to do with Retained Earnings. Retained Earnings, on the other hand, holds the amounts
of the revenues and the expenses, which may or may not be received or paid in cash. There is, therefore, no
relationship between cash and retained earnings.
b.
The businesss total resources (total assets) are $56,500 ($21,200 + $10,000 + $300 + $25,000). The business
owes total liabilities of $2,500, so the shareholders ownership interest in the assets of the business is $54,000
($56,500 $2,500, or $50,000 + $4,000).
20
(continued)
P 2-52A
Req. 4
Journal
DATE
Sept.
18
21
25
28
DEBIT
CREDIT
Cash
Common Shares.........................................................................
Issued shares to shareholder.
50,000
Supplies..............................................................................................
Cash............................................................................................
Purchased supplies.
300
Office Furniture...................................................................................
Cash............................................................................................
Accounts Payable........................................................................
Purchased furniture.
25,000
Accounts Receivable..........................................................................
Service Revenue.........................................................................
Performed service on account.
10,000
Accounts Payable...............................................................................
Cash............................................................................................
Paid on account.
2,500
Rent Expense.....................................................................................
Cash............................................................................................
Paid rent.
4,000
Dividends............................................................................................
Cash............................................................................................
Paid dividend.
2,000
50,000
300
20,000
5,000
10,000
2,500
4,000
2,000
21
(15-20 min.)
P 2-53A
Journal
DATE
Oct.
ACCOUNT TITLES
Cash
Common shares.......................................................
8,000
Rent Expense................................................................
Cash.........................................................................
1,000
Land...............................................................................
Cash.........................................................................
Notes Payable..........................................................
30,000
10
Supplies.........................................................................
Accounts Payable.....................................................
1,200
Accounts Payable...........................................................
Cash.........................................................................
600
Cash..............................................................................
Notes Payable..........................................................
10,000
Cash..............................................................................
Accounts Receivable......................................................
Service Revenue......................................................
7,000
5,000
Salary Expense..............................................................
Advertising Expense......................................................
Utilities Expense............................................................
Cash.........................................................................
2,000
1,500
1,100
Dividends.......................................................................
Cash.........................................................................
3,000
19
22
31
31
31
22
DEBIT
CREDIT
8,000
1,000
5,000
25,000
1,200
600
10,000
12,000
4,600
3,000
(continued)
Req. 2
Cash
8,000
1,000
5,000
600
4,600
3,000
10,000
7,000
Bal. 10,800
Accounts Payable
600
1,200
Bal. 600
Notes Payable
25,000
10,000
Bal. 35,000
Req. 3
Cash:
23
P 2-53A
(50-60 min.)
Req. 1 (journal entries; explanations not required)
Journal
DATE
May
ACCOUNT TITLES
CREDIT
Cash
Common shares.....................................................
30,000
Supplies.......................................................................
Equipment....................................................................
Accounts Payable...................................................
1,000
2,600
Cash.............................................................................
Service Revenue....................................................
1,500
Land.............................................................................
Cash.......................................................................
22,000
11
Accounts Receivable....................................................
Service Revenue....................................................
500
16
Accounts Payable.........................................................
Cash.......................................................................
2,600
17
Utilities Expense...........................................................
Cash.......................................................................
95
24
DEBIT
30,000
3,600
1,500
22,000
500
2,600
95
P 2-54A
18
Cash.............................................................................
Accounts Receivable..............................................
250
250
25
(continued)
Req. 1 (journal entries; explanations not required)
Journal
DATE
May
26
ACCOUNT TITLES
DEBIT
22
Utilities Expense........................................................
Cash....................................................................
400
29
Cash..........................................................................
Service Revenue.................................................
2,000
31
Salary Expense.........................................................
Cash....................................................................
1,300
31
Dividends...................................................................
Cash....................................................................
1,500
CREDIT
400
2,000
1,300
1,500
P 2-54A
(continued)
Req. 2 (ledger accounts)
Cash
May 2
4
18
29
Bal.
30,000
1,500
250
2,000
Accounts Receivable
May 7
16
17
22
31
22,000
2,600
95
400
1,300
May 11
Bal.
31
1,500
May 3
Bal.
5,855
2,600
2,600
2,600
May 7
Bal.
May 3
Bal.
250
1,000
1,000
Land
Accounts Payable
May 16
May 18
Supplies
Equipment
May 3
Bal.
500
250
22,000
22,000
Common shares
3,600
1,000
May 2
Bal.
30,000
30,000
Dividends
May 31
Bal.
Service Revenue
May 4
11
1,500
1,500
Salary Expense
1,500
500
May 31
Bal.
1,300
1,300
27
P 2-54A
29
Bal.
2,000
4,000
Utilities Expense
28
May 17
22
95
400
Bal.
495
(continued)
Req. 3
New Pane Windows Inc.
Trial Balance
May 31, 2011
ACCOUNT
Cash............................................................
Accounts receivable....................................
Supplies......................................................
Equipment...................................................
Land............................................................
Accounts payable........................................
Common shares..........................................
Dividends....................................................
Service revenue..........................................
Salary expense............................................
Utilities expense..........................................
Total............................................................
DEBIT
$ 5,855
250
1,000
2,600
22,000
CREDIT
$ 1,000
30,000
1,500
1,300
495
$35,000
4,000
$35,000
Req. 4
Total resources (assets)
29
P 2-54A
30
(40-50 min.)
Reqs. 1 and 2
Cash
(a)
(b)
(f)
(j)
Bal.
10,000
50,000
800
3,100
500
(c)
(e)
(h)
(k)
Accounts Receivable
60,000
1,500
100
1,800
(g)
Bal.
Office Supplies
(d)
Bal.
1,000
1,000
(c)
Bal.
60,000
60,000
Accounts Payable
50,000
50,000
(h)
Note Payable
(b)
Bal.
3,100
Music Equipment
Building
(a)
Bal.
4,500 (j)
1,400
100 (d)
(i)
Bal.
1,000
600
1,500
Common Shares
50,000
50,000
(a)
Bal.
60,000
60,000
31
P 2-55A
Service Revenue
(f)
(g)
Bal.
32
800
4,500
5,300
(continued)
Salary Expense
(e)
Bal.
1,500
1,500
Rent Expense
(k)
Bal.
Advertising Expense
(k)
Bal.
800
800
1,000
1,000
Utilities Expense
(i)
Bal.
600
600
33
P 2-55A
(continued)
Req. 3
Music Services Ltd.
Trial Balance
January 31, 2011
ACCOUNT
Cash............................................................
Accounts receivable....................................
Office supplies.............................................
Music equipment.........................................
Building.......................................................
Accounts payable........................................
Note payable...............................................
Common shares..........................................
Service revenue..........................................
Salary expense............................................
Rent expense..............................................
Advertising expense....................................
Utilities expense..........................................
Total............................................................
DEBIT
$
500
1,400
1,000
60,000
50,000
1,500
1,000
800
600
$116,800
Req. 4
Total assets
34
CREDIT
1,500
50,000
60,000
5,300
$116,800
P 2-55A
Total liabilities =
Net income
35
Problems
Group B
(45-60 min.)
Req. 1
P 2-57B
Analysis of Transactions
ASSETS
Cash
Bal.
a)
b)
c)
d)
e)
f)
g)
h)
i)
Bal.
1,700
30,000
(1,000)
5,100
700
1,700
(2,100)
(1,600)
(2,000)
32,500
Accounts
Receivable +
=
Supplies +
2,200
LIABILITIES
Accounts
Payable +
24,100
5,400
Land
SHAREHOLDERS EQUITY
Common
Shares +
Retained
Earnings
10,000
30,000
12,600
(1,000)
(700)
800
15,000
16,500
1,700
___
800
Type of Shareholders
Equity Transaction
Issued shares
5,100
Service revenue
15,000
Service revenue
Issued shares
Rent expense
Advertising expense
Dividends
800
24,100
5,200
$73,900
36
41,700
$73,900
(2,100)
(1,600)
(2,000)
27,000
(continued)
P 2-57B
Req. 2
DH Designers, Inc.
Income Statement
For the Month Ended May 31, 2011
Revenues:
Service revenue ($5,100 + $15,000)
Expenses:
Rent expense.................................................................
Advertising expense.......................................................
Total expenses...............................................................
Net income...........................................................................
$20,100
$2,100
1,600
3,700
$16,400
Req. 3
DH Designers, Inc.
Statement of Retained Earnings
For the Month Ended May 31, 2011
Retained earnings, April 30, 2011............................................
Add:
Net income for the month........................................
Less:
Dividends................................................................
Retained earnings, May 31, 2011.............................................
$12,600
16,400
29,000
(2,000)
$27,000
37
(continued)
P 2-57B
Req. 4
DH Designers, Inc.
Balance Sheet
May 31, 2011
ASSETS
Cash.............................................
Accounts receivable......................
Supplies........................................
Land..............................................
$32,500
16,500
800
24,100
LIABILITIES
Accounts payable....................................
SHAREHOLDERS
EQUITY
Common shares......................................
Retained earnings...................................
Total shareholders equity
$ 5,200
41,700
27,000
68,700
38
$73,900
shareholders equity.........................
$73,900
(30-40 min.)
P 2-58B
Req. 1
Journal
ACCOUNT TITLES AND EXPLANATION
a.
DEBIT
Cash
Common Shares......................................................
30,000
b.
Accounts Payable..........................................................
Cash........................................................................
1,000
c.
Cash..............................................................................
Service Revenue.....................................................
5,100
d.
Cash..............................................................................
Accounts Receivable...............................................
700
e.
Supplies........................................................................
Accounts Payable....................................................
800
f.
Accounts Receivable.....................................................
Service Revenue.....................................................
15,000
g.
Cash..............................................................................
Common Shares......................................................
1,700
Rent Expense................................................................
Advertising Expense......................................................
Cash........................................................................
2,100
1,600
Dividends......................................................................
Cash........................................................................
2,000
h.
i.
CREDIT
30,000
1,000
5,100
700
800
15,000
1,700
3,700
2,000
39
(continued)
P 2-58B
Reqs. 2 and 3
Accounts
Receivable
Cash
1,700
1,000
2,200
30,000
5,100
700
1,700
32,500
3,700
2,000
15,000
16,500
Accounts
Payable
1,000
700
Common Shares
5,400
800
5,200
Service
Revenue
Supplies
800
24,100
800
24,100
Retained
Earnings
10,000
30,000
1,700
41,700
Rent Expense
Land
12,600
12,600
Dividends
2,000
2,000
Advertising
Expense
5,100
2,100
1,600
15,000
20,100
2,100
1,600
The balances of all the accounts Cash through Common Shares agree with the ending balances
obtained in Problem 2-57B.
40
ACCOUNT TITLES
3
DEBIT
CREDIT
Cash
Common Shares.............................................................
20,000
Cash......................................................................................
Service Revenue.............................................................
5,000
Supplies.................................................................................
Furniture................................................................................
Accounts Payable............................................................
300
2,500
Land......................................................................................
Cash................................................................................
15,000
Accounts Receivable.............................................................
Service Revenue.............................................................
1,500
16
Cash......................................................................................
Accounts Receivable.......................................................
500
24
Utilities Expense....................................................................
Cash................................................................................
110
24
Utilities Expense...................................................................
Cash...............................................................................
400
28
Cash.....................................................................................
Service Revenue............................................................
2,500
31
Salary Expense....................................................................
Cash...............................................................................
1,200
31
Accounts Payable..................................................................
Cash................................................................................
2,500
Dividends...............................................................................
Cash................................................................................
2,400
31
20,000
5,000
2,800
15,000
1,500
500
110
400
2,500
1,200
2,500
2,400
41
(continued) P 2-61B
Req. 2 (ledger accounts)
Cash
Oct. 3
4
16
28
Bal.
20,000
5,000
500
2,500
Accounts Receivable
Oct. 7
24
24
31
31
15,000
110
400
2,500
1,200
Oct. 7
Bal.
31
2,400
Oct. 6
Bal.
6,390
Oct. 7
Bal.
Accounts Payable
2,500
Oct. 6
Bal.
Dividends
Oct. 31
Bal.
500
300
300
Land
2,500
2,500
Oct. 31
Oct. 16
Supplies
Furniture
Oct. 6
Bal.
1,500
1,000
2,400
2,400
15,000
15,000
Common Shares
2,800
300
Oct. 3
Bal.
20,000
20,000
Service Revenue
Oct.
4
7
28
Bal.
5,000
1,500
2,500
9,000
(
Salary Expense
Oct. 31
Bal.
1,200
1,200
Utilities Expense
Oct. 24
24
110
400
Bal.
510
42
(continued) P 2-61B
Req. 3
Barron Environmental Services Inc.
Trial Balance
October 31, 2011
ACCOUNT
Cash....................................................................
Accounts receivable............................................
Supplies..............................................................
Furniture..............................................................
Land....................................................................
Accounts payable................................................
Common shares..................................................
Dividends............................................................
Service revenue..................................................
Salary expense...................................................
Utilities expense..................................................
Total....................................................................
DEBIT
$ 6,390
1,000
300
2,500
15,000
CREDIT
$ 300
20,000
2,400
1,200
510
$29,300
9,000
$29,300
Req. 4
Total resources (assets)
$300
43