1-3B Work Together

Nancy Iott is starting Iott's Landscaping, a small service business. This business uses the accounts shown in the equation below.

Directions: For each transaction, complete the following:

a. Analyze the transacton to determine which accounts are affected.
b. Type the amount in the appropriate columns using a plus sign if the account increases or a minus sign if the account decreases.
c. The new balance for each account should automtically calculate. Determine that the equation is still in balance. Add the left side. Enter the total under left
Left side total. Add the right side; enter the total under Right Side total.
d. Answers for b & c should be typed in shaded cells
Trans. # Assets = Liabilities + Owner's Equity

Left Accts Rec- Right (revenue,

Side Kathy Prepaid Accts Pay - Accts Pay - Side expense or
total Cash + Doyle Supplies + Insurance = Gertens + Granite Rock + Nancy Iott, Capital total withdraw)

Begin.
Bal. 7,770 70 2,850 3,200 50 0 13,840
#10 (235) (235) Exp
13,655 New Bal. 7,535 70 2,850 3,200 50 0 13,605 13,655
#11 (100) (100) WD
13,505 New Bal. 7,435 70 2,850 3,200 50 0 13,505 13,505

** For transactions that change owner's equity, write in parenthesis a description of the transaction to the right of the amount. **
Transactions
10. Paid cash for cell phone bill, $235.00
11. Owner withdrew equity in the form of cash, $100.00
1-3B On Your Own
Roger Scofield is starting Rog's Ferrier Service, a small service business. Rog's uses the accounts shown in the equation below.

Directions: For each transaction, complete the following:

a. Analyze the transacton to determine which accounts are affected.
b. Type the amount in the appropriate columns using a plus sign if the account increases or a minus sign if the account decreases.
c. The new balance for each account should automtically calculate. Determine that the equation is still in balance. Add the left side. Enter the total under left
Left side total. Add the right side; enter the total under Right Side total.
d. Answers for b & c should be typed in shaded cells
Trans. # Assets = Liabilities + Owner's Equity

Left Accts Rec- Right (revenue,

Side Canyon Prepaid Accts Pay - Accts Pay - Big Side expense or
total Cash + Ranch Supplies + Insurance = Cenex + Dee's Tack + Roger Scofield, Capital total withdraw)

Begin.
Bal. 4,875 250 1,525 2,500 0 75 9,075
#10 (150) (150) WD
9000 New Bal. 4,725 250 1,525 2,500 0 75 8,925 9000
#11 (375) (375) Exp
8625 New Bal. 4,350 250 1,525 2,500 0 75 8,550 8625

** For transactions that change owner's equity, write in parenthesis a description of the transaction to the right of the amount. **
Transactions
10. Owner withdrew equity in the form of cash, $150.00
11. Paid cash for rent, $375.00
1-3B Application Problem
Bethany Hartman is starting Hartman's Lawn Service, a small service business. Harman's uses the accounts shown in the equation below.

Directions: For each transaction, complete the following:

a. Analyze the transacton to determine which accounts are affected.
b. Type the amount in the appropriate columns using a plus sign if the account increases or a minus sign if the account decreases.
c. The new balance for each account should automtically calculate. Determine that the equation is still in balance. Add the left side. Enter the total under left
Left side total. Add the right side; enter the total under Right Side total.
d. Answers for b & c should be typed in shaded cells
Trans. # Assets = Liabilities + Owner's Equity

Left Accts Rec - Accts Pay - Right (revenue,

Side Dakota Prepaid Accts Pay - Hickman Bethany Hartman, Side expense or
total Cash + Manufacuring Supplies + Insurance = Knapp Co. + Mowing + Capital total withdraw)

Begin.
Bal. 5,875 0 175 1,800 0 0 7,850
#11. (400) (400) Exp
7,450 New Bal. 5,475 0 175 1,800 0 0 7,450 7,450
#12. (300) (300) WD
7,150 New Bal. 5,175 0 175 1,800 0 0 7,150 7,150
#13. (125) (125) Exp
7,025 New Bal. 5,050 0 175 1,800 0 0 7,025 7,025
#14 (75) (75) Exp
6,950 New Bal. 4,975 0 175 1,800 0 0 6,950 6,950

** For transactions that change owner's equity, write in parenthesis a description of the transaction to the right of the amount. **
Transactions
11. Paid cash for rent, $400.00
12. Owner withdrew equity in the form of cash, $300.00
13. Paid cash for mower repairs, $125.00
14. Paid cash for advertising, $75.00