ACCOUNTINGCalvin Parish is starting Parish Repair Shop, a small service business. Parish Repair Shop uses the accounts shown in the following accounting equation. Use the form to complete this problem.
$$
\begin{matrix} & & \mathrm{{\scriptscriptstyle Assets}} & \mathrm{{\scriptscriptstyle =}} & \mathrm{{\scriptscriptstyle Liabilities}} & \mathrm{{\scriptscriptstyle +}} & \mathrm{{\scriptscriptstyle Owners \ Equity}}\\
\mathrm{{\scriptscriptstyle Trans.}} & \mathrm{{\scriptscriptstyle Cash +}} & \mathrm{{\scriptscriptstyle Supplies +}} & \mathrm{{\scriptscriptstyle Prepaid \ =}} & \mathrm{{\scriptscriptstyle Accts. Pay. \ +}} & \mathrm{{\scriptscriptstyle Accts. Pay. \ +}} & \mathrm{{\scriptscriptstyle Calvin \ Parish,}}\\\mathrm{{\scriptscriptstyle No}} & & & \mathrm{{\scriptscriptstyle Insurance}} & \mathrm{{\scriptscriptstyle Five \ Star}} & \mathrm{{\scriptscriptstyle Riverland}} & \mathrm{{\scriptscriptstyle Capital}}\\ & & & & \mathrm{{\scriptscriptstyle Supply}} & \mathrm{{\scriptscriptstyle Company}}\\
\mathrm{{\scriptscriptstyle Beg. \ Bal.}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}}\\\mathrm{{\scriptscriptstyle 1.}} & \mathrm{{\scriptscriptstyle +3,000}} & & & & & \mathrm{{\scriptscriptstyle +3,000}}\\
\mathrm{{\scriptscriptstyle New \ Bal.}} & \mathrm{{\scriptscriptstyle 3,000}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 0}} & \mathrm{{\scriptscriptstyle 3,000}}\\\mathrm{{\scriptscriptstyle 2.}}\\\end{matrix}
$$
Transactions:
1. Received cash from owner as an investment, $3,000.00.
2. Paid cash for insurance,$1,600.00.
3. Bought supplies on account from Five Star Supply, $700.00.
4. Bought supplies on account from Riverland Company,$300.00.
5. Paid cash on account to Five Star Supply, $700.00.
6. Paid cash on account to Riverland Company,$200.00.
7. Paid cash for supplies, $100.00.
8. Received cash from owner as an investment,$1,500.00.
Instructions:
For each transaction, complete the following. Transaction 1 is given as an example.
a. Analyze the transaction to determine which accounts in the accounting equation are affected.
b. Write the amount in the appropriate columns using a plus (+) if the account increases or a minus (-) if the account decreases.
c. Calculate the new balance for each account in the accounting equation.
d. Before going on to the next transaction, determine that the accounting equation is still in balance. ACCOUNTINGThe Design Den, a retail merchandising business, uses special journals. On page 3 of the purchases journal in the working papers, record the following purchases:
$$
\begin{array}{rl}
\text{Date} & \text{Transactions}\\ \hline
\text{Feb. 1} & \text{Purchased $\$ 1,400$ in merchandise on account from Woodstock Furnishings, terms $3 / 15, \mathrm{n} / 30,$ Invoice WF39.}\\
\text{2} & \text{Bought $\$ 900$ in store equipment on account from Holmes Equipment Company, terms $\mathrm{n} / 30,$ Invoice $98 .$}\\
\text{4} & \text{Purchased $\$ 700$ in merchandise from Fuller Fabrics, terms $3 / 10, \mathrm{n} / 30,$ Invoice $72 .$}\\
\text{7} & \text{Purchased computer speakers on account for $\$ 50$ from Digital Solutions, terms $2 / 10, \mathrm{n} / 30,$ Invoice $\mathrm{AB} 220$.}\\
\text{10} & \text{Purchased fabric from Valley Upholstery for $\$ 1,500,$ terms $2 / 10, \mathrm{n} / 30,$ Invoice $947 .$}\\
\end{array}
$$