NAME: HOÀNG THANH HÀ

ID: 31211022179
CLASS: PA-DH47ISB-10
HOMEWORK CHAPTER 1
E1-6 Selected transactions for Green Valley Lawn Care Company:
1. Made cash investment to start business -> Increase in assets and increase in owner’s equity
2. Paid monthly rent. -> Decrease in assets and decrease in owner’s equity
3. Purchased equipment on account. -> Increase in assets and increase in liabilities
4. Billed customers for services performed. -> Increase in assets and increase in owner’s equity
5. Withdrew cash for owner’s personal use. -> Decrease in assets and decrease in owner’s
equity
6. Received cash from customers billed in (4). -> Increase in assets (cash) and decrease in
assets (account receivable)
7. Incurred advertising expense on account. -> Increase in liabilities and decrease in owner’s
equity
8. Purchased additional equipment for cash. -> Increase in assets (equipment) and decrease in
assets (cash)
9. Received cash from customers when service was performed. -> Increase in assets and
increase in owner’s equity
E1-7 Falske Computer Timeshare Company entered into the following transactions during
May 2017.
1. Purchased computers for $20,000 from Digital Equipment on account. -> (c) An increase in
assets and an increase in liabilities.
2. Paid $4,000 cash for May rent on storage space. -> (d) A decrease in assets and a decrease in
owner’s equity.
3. Received $17,000 cash from customers for contracts billed in April. -> (a) An increase in
assets and a decrease in assets.
4. Performed computer services for Viking Construction Company for $4,000 cash. -> (b) An
increase in assets and an increase in owner’s equity.
5. Paid Tri-State Power Co. $11,000 cash for energy usage in May. -> (d) A decrease in assets
and a decrease in owner’s equity.
6. Falske invested an additional $29,000 in the business. -> (b) An increase in assets and an
increase in owner’s equity.
7. Paid Digital Equipment for the computers purchased in (1) above. -> (e) A decrease in assets
and a decrease in liabilities.
8. Incurred advertising expense for May of $1,200 on account. -> (f) An increase in liabilities
 and a decrease in owner’s equity.

P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017.
The following transactions occurred during the month of May.
May 1 Trixie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $600 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $5,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on
May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account.
30 Paid $275 for utilities
(a) Show the effects of the previous transactions on the accounting equation
Assets =Liabilities +Owner’s Equity
Date Cash +Accounts +Supplies +Equip =Notes +Accounts +Owner’s -Owner’s +Revenues -Expenses
Receivable ment Payable Payable Capital Drawings

May 1 +$7,000 +$7,000

May 2 -$900 -$900

May 3 +$600 +$600

May 5 -$125 -$125

May 9 +$4,000 +$4,000

May -$1,000 -$1,000

12
May +$5,400 +$5,400
15
May -$2,500 -$2,500
17
May -$600 -$600
20
May +$4,000 -$4,000
23
May +$5,000 +$5,000
26
May +$4,200 +$4,200
29
May -$275 -$275
30
Total $14,600 +$1,400 +$600 +$4,200 =$5,000 +$4,200 +$7,000 -$1,000 +$9,400 -$3,800
$20,800 =$20,800

(b) Prepare an income statement for the month of May

Matrix Consulting
Income Statement
For the Month Ended May 31
Revenues:
Service revenue $ 9,400
Expenses:
Rent expense $900
Advertising expense 125
Salaries and wages expense 2,500
Utilities expense 275

Total expenses 3,800

Net income $ 5,600

(c) Prepare a balance sheet at May 31, 2017

Matrix Consulting
Balance Sheet
May 31, 2017
Assets Liabilities
Cash $14,600 Notes Payable $5,000
Accounts Receivable 1,400 Accounts Payable 4,200
Supplies 600
Equipment 4,200 Owner’s Equity
Owner’s Capital 7,000
Owner’s Drawing 1,000
Revenue 9,400
Expenses 3,800
Total assets $20,800 Total liabilities and owner’s equity $20,800