Contributed / Share Capital: Transaction As On: 1st Jan 2010

Condition : John Smith started an incorporated CD and t
by depositing $25000 of his own funds in a bank accoun

$25000 of stock certificates in return. He is the sole own
Transaction
Liabilities and Equities
Contributed / Share Capital
Total
Condition : Music Mart borrowed $12500 from a bank; t
Transaction
Contributed / Share Capital
Note Payables ( Loan )
Total
Condition : The business purchased inventory (merchan
Transaction
Owner's Equity
Total
Condition : The store sold merchandise costing $500, fo
Transaction
Owner's Equity ( 25000 + Profit : 250 )
Total
Condition : The store purchased and received merchand
Transaction
Owner's Equity
Accounts Payable
( Earlier terminology : Crediter )
Total
Condition : Merchandise costing $1,500 was sold for $2
Transaction
Owner's Equity ( 25250 + Profit : 800 )
Accounts Payable
Total
Condition : Merchandise costing $1,700 was sold for $2
Transaction
Owner's Equity ( 26050 + 920 )
Accounts Payable
Total
Condition : The store purchased a three year fire insura
Transaction
Owner's Equity

Accounts Payable
Total
Condition : The store purchased two lots of land of equa

year mortgage for $18,000.
Transaction
Owner's Equity
Accounts Payable
Mortgage on land
Total
Condition : The store sold one of the two lots of land for
assumed $9,000 of the mortgage; that is, Music Mart, In
Transaction
Owner's Equity
Accounts Payable
Mortgage on land ( 18000 - 9000 )
Total
Condition : Smith received a bonafide offer of $33,000 f

rejected the offer. It was evident that the store had alre
this half.
Transaction
Owner's Equity
Accounts Payable
Mortgage on land
Total
Condition : Smith withdrew $1,000 cash from the store

Transaction
Owner's Equity ( 26970 - Divident to share
holder - to owner : 1000 )
Accounts Payable
Mortgage on land
Total
Condition : Smith took merchandise costing $750 from t

Transaction
Owner's Equity ( 25970 - Divident to owner
as goods: 750 )
Accounts Payable
Mortgage on land
Total
Condition : Smith learned that the individual who purch

lot still owned by Music Mart, Inc., was identical in value
Transaction
Owner's Equity
Accounts Payable
Mortgage on land
Total
Condition : The store paid off $6,000 of its note payable

Transaction
Owner's Equity
Note Payables ( Loan ) ( 12500 - 6000 )
Accounts Payable
Mortgage on land
Total
Condition : Smith sold one-third of the stock he owned i

Transaction
Owner's Equity
Accounts Payable
Mortgage on land
Total
Condition : Merchandise costing $850 was sold for $1,3

Transaction
Owner's Equity ( 25220 - 460 )
Accounts Payable
Mortgage on land
Total
corporated CD and tape store called Music Mart, Inc. on 1st January, 2010. He did this
nds in a bank account that he has opened in the name of the business entity and took
n. He is the sole owner of the corporation.
Transaction as on : 1st Jan 2010
Amount
Assets
$
$ 25,000.00
$ 25,000.00
Amount
$
Cash $ 25,000.00
Total
$ 25,000.00
2500 from a bank; the loan was evidenced by a legal document called note.
Transaction as on : 2nd Jan 2010
Amount
Assets
$
$ 25,000.00
$ 12,500.00
$ 37,500.00
Amount
$
Cash ( 25000 + 12500 ) $ 37,500.00
Total
$ 37,500.00
inventory (merchandise it intended to sell) in the amount of $5000, paying cash.

Transaction as on : 3rd Jan 2010
Amount
Assets
$
$ 25,000.00
$ 12,500.00
$ 37,500.00
Amount
$
Cash ( 37500 - 5000 ) $ 32,500.00
Inventory $
5,000.00
Total
$ 37,500.00
dise costing $500, for $750 in cash.

Transaction as on : 4th Jan 2010
Amount
Assets
$
$ 25,250.00
$ 12,500.00
$ 37,750.00
Amount
$
Cash ( 32500 + 750 ) $ 33,250.00
Inventory ( 5000 - 500 ) $
4,500.00
Total
$ 37,750.00
d received merchandise for inventory for $5,000, agreeing to pay within 30 days.
Amount
Assets
Amount
$
$
$ 25,250.00
Cash $ 33,250.00
Inventory ( 4500 + Purchased incentory @
$ 12,500.00
$
9,500.00
5000 )
$
5,000.00
$ 42,750.00
Total
$ 42,750.00
500 was sold for $2,300, which was received in cash.

Amount
Assets
$
$ 26,050.00
$ 12,500.00
$
5,000.00
Amount
$
Cash ( 33250 + 2300 ) $ 35,550.00
Inventory ( 9500 - 1500 ) $
8,000.00
$ 43,550.00
Total
$ 43,550.00
700 was sold for $2,620, the customers agreeing to pay $2,620 within 30 days.
Amount
Assets
$
$ 26,970.00
$ 12,500.00
$
5,000.00
Amount
$
Cash $ 35,550.00
Inventory ( 8000 - 1700 ) $
6,300.00
Accounts Receivables $
2,620.00
$ 44,470.00
Total
$ 44,470.00
hree year fire insurance policy for $1,224, paying cash.

Amount
Assets
$
$ 26,970.00
Amount
$
Cash ( 35500 - 1224 ) $ 34,326.00
$
$
12,500.00
5,000.00
Inventory $
Prepaid Insurance $
$ 44,470.00
Total
6,300.00
2,620.00
1,224.00
$ 44,470.00
o lots of land of equal size for a total of $24,000. It paid $6,000 in cash and gave a 10Transaction as on : 9th Jan 2010
Amount
Assets
$
$ 26,970.00
$ 12,500.00
$
5,000.00
$ 18,000.00
$ 62,470.00
Amount
$
Land $ 24,000.00
Cash ( 34326 - 6000 ) $ 28,326.00
Inventory $
6,300.00
2,620.00
Prepaid Insurance $
1,224.00
Total
$ 62,470.00
e two lots of land for $12,000. It received $3,000 cash, and in addition, the buyer
hat is, Music Mart, Inc., became no longer responsible for this half.
Amount
Assets
$
$
26,970.00
$
$
$
12,500.00
5,000.00
9,000.00
Amount
$
Land ( 24000 - cost of 1 lot land @ 12000 ) $
$ 53,470.00
Cash ( 28326 + 3000 )

Inventory
Accounts Receivables
Prepaid Insurance
Total
$
$
$
$
12,000.00
31,326.00
6,300.00
2,620.00
1,224.00
$ 53,470.00
de offer of $33,000 for the business; although his equity was then only $26,970, he
at the store had already acquired goodwill of $6,030.became no longer responsible for
Amount
Assets
$
$ 26,970.00
$ 12,500.00
Amount
$
Land $ 12,000.00
Cash $ 31,326.00
$
$
5,000.00
9,000.00
Inventory $
Prepaid Insurance $
$ 53,470.00
Total
6,300.00
2,620.00
1,224.00
$ 53,470.00
cash from the stores bank account for his personal use.
Amount
Assets
$
$
25,970.00
$
$
$
12,500.00
5,000.00
9,000.00
Amount
$
Land $
Cash ( 31326 - Divident equity : 1000 )

Inventory
Prepaid Insurance
$ 52,470.00
Total
$
$
$
$
12,000.00
30,326.00
6,300.00
2,620.00
1,224.00
$ 52,470.00
costing $750 from the stores inventory for his personal use.
Amount
Assets
$
$
25,220.00
$
$
$
12,500.00
5,000.00
9,000.00
$ 51,720.00
Amount
$
Land $
Cash
Inventory ( 6300 - 750 )
Prepaid Insurance
Total
$
$
$
$
12,000.00
30,326.00
5,550.00
2,620.00
1,224.00
$ 51,720.00
ndividual who purchased the land (on Jan. 10) subsequently sold it for $ 14,000. The
was identical in value with this other plot.
Amount
Assets
Amount
$
$
$ 25,220.00
Land $ 12,000.00
$ 12,500.00
Cash $ 30,326.00
$
5,000.00
Inventory ( 6300 - 750 ) $
5,550.00
9,000.00
Prepaid Insurance $
$ 51,720.00
Total
2,620.00
1,224.00
$ 51,720.00
0 of its note payable (disregard interest).

Amount
Assets
$
$ 25,220.00
$
6,500.00
$
5,000.00
$
9,000.00
Amount
$
Land $ 12,000.00
Cash ( 30326 - 6000 ) $ 24,326.00
Inventory ( 6300 - 750 ) $
5,550.00
2,620.00
Prepaid Insurance $
1,224.00
$ 45,720.00
Total
$ 45,720.00
he stock he owned in Music Mart, Inc., for $11,000 cash.

Amount
Assets
$
$ 25,220.00
$
6,500.00
$
5,000.00
$
9,000.00
Amount
$
Land $ 12,000.00
Cash $ 24,326.00
Inventory $
5,550.00
2,620.00
Prepaid Insurance $
1,224.00
$ 45,720.00
Total
$ 45,720.00
50 was sold for $1,310, which was received in cash.

Amount
Assets
$
$ 25,680.00
$
6,500.00
$
5,000.00
$
9,000.00
Amount
$
Land $ 12,000.00
Cash ( 24326 + 1310 ) $ 25,636.00
Inventory ( 5550 - 850 ) $
4,700.00
2,620.00
Prepaid Insurance $
1,224.00
$ 46,180.00
Total
$ 46,180.00

Contributed / Share Capital: Transaction As On: 1st Jan 2010

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Contributed / Share Capital: Transaction As On: 1st Jan 2010

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Condition : John Smith started an incorporated CD and t

by depositing $25000 of his own funds in a bank accoun

Condition : Music Mart borrowed $12500 from a bank; t

Condition : The business purchased inventory (merchan

Condition : The store sold merchandise costing $500, fo

Condition : The store purchased and received merchand

Condition : Merchandise costing $1,500 was sold for $2

Condition : Merchandise costing $1,700 was sold for $2

Condition : The store purchased a three year fire insura

Note Payables ( Loan )

Condition : The store purchased two lots of land of equa

Condition : Smith received a bonafide offer of $33,000 f

Condition : Smith withdrew $1,000 cash from the store

Condition : Smith took merchandise costing $750 from t

Condition : Smith learned that the individual who purch

Condition : The store paid off $6,000 of its note payable

Condition : Smith sold one-third of the stock he owned i

Condition : Merchandise costing $850 was sold for $1,3

inventory (merchandise it intended to sell) in the amount of $5000, paying cash.

dise costing $500, for $750 in cash.

500 was sold for $2,300, which was received in cash.

hree year fire insurance policy for $1,224, paying cash.

Land ( 24000 - cost of 1 lot land @ 12000 ) $

Cash ( 28326 + 3000 )

Cash ( 31326 - Divident equity : 1000 )

0 of its note payable (disregard interest).

he stock he owned in Music Mart, Inc., for $11,000 cash.

50 was sold for $1,310, which was received in cash.

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