Exercise 4.

Perez Company had the following transactions during January:

1. Jan 1 Issued $100,000 in stock to owners in exchange for cash to start the business.
2. Jan 5 Borrowed $50,000 from the bank by signing a notes payable.
3. Jan 10 Purchase equipment by paying cash for $25,000.
3. Jan 15 Paid January rent of $2,400 for the office space (hint: since this is for January, record as rent expense)
4. Jan 18 Performed services for customers and received cash immediately for $8,000.
5. Jan 20 Purchased $2,000 in supplies on account.
Prepare a transaction analysis for the January transactions. Remember to prove the accounting equation at the end.

Assets =
Transaction Cash Supplies
Jan 1 Issued stock to owners
Jan 5 Borrowed money from bank
Jan 10 Purchased equipment with cash
Jan 15 Paid January rent
Jan 18 Performed services
Jan 20 Purchased supplies on account
s for January, record as rent expense)

ve the accounting equation at the end.

s = Liability + Equity
Equipment Accounts Payable Notes Payable Common Stock
 + Revenue – Expense
Service Revenue Rent Expense
On December 31, Bryniuk’s Company, the accounting records showed the following information:
Cash 49,500
Accounts Receivable 125,000
Supplies 1,500
Prepaid Insurance 12,000
Equipment 70,000
Building 420,000
Land 111,500
Accounts Payable 80,000
Notes Payable 170,000
Common Stock 410,000
Retained Earnings 65,000
Dividends 20,000
Service Revenue 174,000
Interest Revenue 1,000
Salaries Expense 52,000
Advertising Expense 17,000
Insurance Expense 5,000
Utilities Expense 13,750
Interest Expense 2,750

Prepare the Income Statement for year ended December 31.

owing information: