PROBLEM 2

1 Cash 800,000
Capital 800,000 Capital
to record the owner's investment 800,000
2 Account recievable 300,000
Revenue 300,000 800,000
to record service rendered 800,000
3 Cash 40,000 800,000 800,000
Revenue 40,000
to record service rendered
4 Cash 120,000
Account Recievable 120,000 Account recievable
to record collection on account recievable 300,000
5 Utilities expense 10,000 120,000
Cash 10,000 300,000 120,000
payment for utility expense 180,000
300,000 300,000

Utilities expense
10,000

10,000
10,000
10,000 10,000
T-accounts

Cash Entity B
800,000 Trial balance
40,000
120,000 Cash
10,000 Account recievable
960,000 10,000 Capital
950,000 Utilities expense
960,000 960,000 Revenue

Revenue
300,000
40,000
340,000
340,000
340,000 340,000
 Entity B
Trial balance
Dr Cr
950,000
180,000
800,000
10,000
340,000
1,140,000 1,140,000
Problem 7
1 Cash 400,000
Owner equity 400,000
to record the owner's investment
2 Cash 500,000
Notes payable 500,000
to record the loan obtained from the bank
3 Advertising expense 35,000
cash 35,000
to record advertising expense
4 Equipment 380,000
cash 380,000
to record the acquisition of equipment
5 Cash 200,000
service fee 200,000
to record service rendered
6 Account recievable 420,000
service fee 420,000
to record service rendered to account
7 cash 300,000
Account recievable 300,000
to record the collected account recievable
8 Notes payable 250,000
interest expense 60,000
cash 310,000
to record the partial payment of notes payable
9 supplies expense 16,000
cash 16,000
to record the payment of supplies expense
10 Utilities expense 72,000
cash 72,000
to record the payment of utilities expense
11 salaries expense 120,000
cash 120,000
to record the payment for utilities expense
12 Owners drawing 90,000
cash 90,000
to record owners drawing
 T-accounts

Cash Equipment
400,000 380,000
500,000
35,000 380,000 -
380,000 380,000
200,000 380,000 380,000
300,000
310,000
16,000
72,000 Notes payable
120,000 500,000
90,000 250,000
1,400,000 1,023,000 250000 500,000
377,000 250,000
1,400,000 1,400,000 500000 500,000

Owners drawing Advertising expense

90,000 35,000

90,000 35,000
90,000 35,000
90,000 90000 35,000 35000

Supplies expense Utilities expense

16,000 72,000

16,000 72,000
16,000 72,000
16,000 16000 72,000 72000

Mind Your Own Business

Unadjusted trial balance
January 1, 2x21

Dr Cr
Cash 377,000
Equipment 380,000
Account recievable 120,000
Notes payable 250,000
Owners Equity 400,000
Owners Drawing 90,000
Advertising expense 35,000
Interest Expense 60,000
Supplies Expense 16,000
Utilities Expense 72,000
Salaries Expense 120,000
Revenue 620,000
1,270,000 1,270,000
Account recievable
420,000
300,000
420,000 300,000
120,000
420,000 420,000

Owner Equity
400,000

400,000
400,000
400000 400,000

Interest expense
60,000

60,000
60,000
60,000 60000

Salaries Expense
120,000

120,000
120,000
120,000 120000
 Problem 10
1 A 6 C
2 B 7 B
3 B 8 D
4 D 9 C
5 A 10 D