Abe Shultz owns and operates a pet grooming business called Kits & Pups Grooming. The following accounts are used to journalize transactions. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{207 Accts. Pay.—Pet Gourmet}\\ \text{105 Accts. Rec.—Juan Alvarez} & \text{301 Abe Shultz, Capital}\\ \text{110 Accts. Rec.—N. Carlsbad} & \text{305 Abe Shultz, Withdrawals}\\ \text{115 Accts. Rec.—Martha Giles} & \text{310 Income Summary}\\ \text{125 Office Equipment} & \text{401 Boarding Revenue}\\ \text{130 Office Furniture} & \text{405 Grooming Revenue}\\ \text{135 Computer Equipment} & \text{501 Advertising Expense}\\ \text{140 Grooming Equipment} & \text{505 Equipment Repair Expense}\\ \text{145 Kennel Equipment} & \text{510 Maintenance Expense}\\ \text{201 Accts. Pay.—Able Store} & \text{520 Rent Expense}\\ \text{Equipment} & \text{525 Salaries Expense}\\ \text{205 Accts. Pay.—Dogs &} & \text{530 Utilities Expense}\\ \text{Cats Inc.} & \text{ }\\ \end{matrix} $$ Record the following transactions on page 7 of the general journal in your working papers. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Received $\$ 125$ for boarding a client's dog for one week, Receipt 300.}\\ \text{3} & \text{Abe Shultz contributed to the business a computer valued at $\$ 2,500,$ Memorandum 33. }\\ \text{5} & \text{Billed a client, Juan Alvarez, $\$ 80$ for grooming his pets, Sales Invoice 212. }\\ \text{9} & \text{Wrote Check 411 to Allegheny Power Co. for $\$ 150$ in payment for the month's electricity bill.}\\ \text{11} & \text{Abe Shultz withdrew $\$ 700$ for personal use, Check 412.}\\ \text{14} & \text{Purchased kennel equipment for $\$ 2,600$ from Dogs $\&$ Cats Inc., on account, Invoice DC92.}\\ \text{16} & \text{Paid the part-time receptionist's salary of $\$ 400$ by issuing Check 413.}\\ \text{18} & \text{Abe Shultz took from the business for his personal use a ten-key adding machine valued at $\$ 65,$ Memorandum 34.}\\ \text{23} & \text{Juan Alvarez sent a check for $\$ 80$ in full payment of his account, Receipt 301.}\\ \text{28} & \text{Purchased on credit $\$ 250$ in grooming equipment from the Pet Gourmet, Invoice PG333.}\\ \text{31} & \text{Issued Check 414 for $\$ 1,300$ as an installment payment for the amount owed to Dogs & Cats Inc. }\\ \end{array} $$

After graduating from college, Abe Shultz decided to start a pet grooming service called Kits & Pups Grooming. Use a form similar to the one that follows. For each of the following transactions: 1. Identify the accounts affected, using the account names on the form. 2. Determine the amount of the increase or decrease for each account. 3. Write the amount of the increase (+) or decrease (-) in the space under each account affected. 4. On the following line, write the new balance for each account. 5. Transaction 1 is completed as an example. $$ \begin{matrix} \text{ } & \text{ } & \text{Assets} & \text{ } & \text{ } & \text{$=$} & \text{Liabilities} & \text{$+$} & \text{Owner’s Equity}\\ \hline \text{Trans.} & \text{Cash in} & \text{Accts.} & \text{Office} & \text{Grooming} & \text{$=$} & \text{Accounts} & \text{$+$} & \text{Abe Shultz,}\\ \text{ } & \text{Bank} & \text{Rec.} & \text{Equip.} & \text{Equip.} & \text{ } & \text{Payable} & \text{ } & \text{Capital}\\ \text{1} & \text{$+\$ 10,000$} & \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{$+\$ 10,000$}\\ \end{matrix} $$ $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \text{Jan. 2} & \text{1. Abe Shultz began the business by depositing $\$10,000$ in a checking account at the Shoreline National Bank in the name of the business, Kits & Pups Grooming.}\\ \text{3} & \text{2. Bought grooming equipment for cash, $\$1,000$.}\\ \text{8} & \text{3. Issued a check for $\$900$ for the monthly rent.}\\ \text{9} & \text{4.Bought $\$6,000$ worth of new office equipment on account for use in the business.}\\ \text{15} & \text{5. Received $\$700$ cash for services performed for customers during the first week of business. }\\ \text{21} & \text{6. Issued a $\$2,000$ check to the creditor as partial payment for the office equipment purchased on account.}\\ \text{29} & \text{7. Performed grooming services and agreed to be paid for them later, $\$500$.}\\ \end{array} $$

Juanita Ortega is the owner of Outback Guide Service. The following accounts are used to record the transactions of her business. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accts. Pay.—Peak Equipment Inc.}\\ \text{105 Accts. Rec.—M. Johnson} & \text{207 Accts. Pay.—Premier Processors}\\ \text{110 Accts. Rec.—Feldman,} & \text{301 Juanita Ortega, Capital}\\ \text{Jones & Ritter} & \text{302 Juanita Ortega, Withdrawals}\\ \text{115 Accts. Rec.—Podaski} & \text{310 Income Summary}\\ \text{Systems Inc.} & \text{401 Guide Service Revenue}\\ \text{130 Office Equipment} & \text{501 Advertising Expense}\\ \text{135 Office Furniture} & \text{505 Maintenance Expense}\\ \text{140 Computer Equipment} & \text{515 Rent Expense}\\ \text{145 Hiking Equipment} & \text{520 Salaries Expense}\\ \text{150 Rafting Equipment} & \text{525 Utilities Expense}\\ \text{201 Accts. Pay.—A-1} & \text{ }\\ \text{Adventure Warehouse}\\ \end{matrix} $$ Record the following transactions on page 1 of the general journal in your working papers. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Juanita Ortega contributed the following assets to her business: cash, $\$ 1,500 ;$ hiking equipment, $\$ 2,000 ;$ rafting equipment, $\$ 2,500 ;$ and office furniture, $\$ 500 ;$ Memorandum 21.}\\ \text{2} & \text{Issued Check 515 to Town News for a $\$ 75$ ad.}\\ \text{4} & \text{Purchased $\$ 3,000$ in rafting equipment on account from A-1 Adventure Warehouse, Invoice AW45.}\\ \text{6} & \text{A group from Feldman, Jones & Ritter went on a hiking trip. The group was billed $\$ 4,800$ for guide services, Sales Invoice 300.}\\ \text{10} & \text{Paid $\$ 300$ to Dunn's Painting and Interior Co. for painting the office, Check 516. }\\ \text{13} & \text{Made a $\$ 1,000$ payment to A-1 Adventure Warehouse toward the amount owed, Check 517.}\\ \text{15} & \text{Received a check for $\$ 4,800$ from Feldman, Jones 8 Ritter in payment of their account, Receipt 252.}\\ \text{18} & \text{Juanita Ortega paid herself $\$ 600$ by issuing Check 518.}\\ \text{22} & \text{Billed a client, Mary Johnson, $\$ 1,200$ for completing guide services on a hiking expedition, Sales Invoice 301.}\\ \text{25} & \text{Paid the monthly telephone bill for $\$ 175$ by issuing Check 519.}\\ \text{30} & \text{Purchased a $\$ 3,600$ computer system from Premier Processors. Made a down payment for $\$ 1,800$ and agreed to pay the balance within 30 days, Check 520 and Invoice 749.}\\ \end{array} $$

Regina Delgado owns a business called Hot Suds Car Wash. She uses the following chart of accounts.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Wash Revenue}\\ \text{105 Accts. Rec.—Linda Brown} & \text{405 Wax Revenue}\\ \text{110 Accts. Rec.—Valley Auto} & \text{410 Interior Detailing Revenue}\\ \text{125 Office Equipment} & \text{501 Advertising Expense}\\ \text{130 Office Furniture} & \text{505 Equipment Rental Expense}\\ \text{135 Car Wash Equipment} & \text{510 Maintenance Expense}\\ \text{201 Accts. Pay.—Allen} & \text{520 Rent Expense}\\ \text{Vacuum Systems} & \text{525 Salaries Expense}\\ \text{205 Accts. Pay.—O’Brian’s} & \text{530 Utilities Expense}\\ \text{Office Supply} & \text{ }\\ \text{301 Regina Delgado, Capital} & \text{ }\\ \text{305 Regina Delgado, Withdrawals} & \text{ }\\ \text{310 Income Summary} & \text{ }\\ \end{matrix}$$

Record the following transactions on page 1 of the general journal in your working papers.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Regina Delgado invested $\$ 12,000$ in the business, Memorandum 41.}\\ \text{5} & \text{Purchased $\$ 5,000$ in desks, chairs, and cabinets from O'Brian's Office Supply on account, Invoice 1632.}\\ \text{8} & \text{Deposited $\$ 1,600$ for income received from car washes for the week, Receipt 101.}\\ \text{10} & \text{Paid the Village Bulletin $\$ 75$ for running an ad, Check 301.}\\ \text{13} & \text{Regina Delgado withdrew $\$ 900$ for personal use, Check 302.}\\ \text{17} & \text{Billed Valley Auto $\$ 400$ for interior detailing, Sales Invoice 102.}\\ \text{18} & \text{Paid O' Brian's Office Supply $\$ 2,500$ as an installment payment on account, Check 303.}\\ \text{20} & \text{Regina Delgado transferred to the business an electronic calculator valued at $\$ 350$, Memorandum 42.}\\ \text{22} & \text{Wrote Check 304 for $\$ 600$ to Shadyside Realty for the office rent. }\\ \text{24} & \text{Purchased $\$ 1,500$ in car wash equipment from Allen Vacuum Systems on account, Invoice 312.}\\ \text{26} & \text{Received a $\$ 400$ check from Valley Auto in full payment of its account, Receipt 102.}\\ \text{30} & \text{Issued Check 305 for $\$ 2,500$ to $\mathrm{O}^{\prime}$ Brian's Office Supply for the balance due on account.}\\ \end{array}$$

The totals of the payroll register for Kits & Pups Grooming are shown in your working papers. On December 31 the owner, Abe Shultz, wrote Check 1400 to pay the payroll. In your working papers: 1. Record the payroll entry in the general journal. 2. Post the entry to the general ledger accounts.

The general ledger accounts and balances for Kits & Pups Grooming follow. $$ \begin{array}{ll} \mathbf{\text{General Ledger}} & \text{ }\\ \text{101 Cash in Bank} & \text{$\$ 4,296$}\\ \text{105 Accts. Rec. - Juan Alvarez} & \text{$1,528$}\\ \text{110 Accts. Rec. - Nathan Carlsbad} & \text{904}\\ \text{115 Accts. Rec. - Martha Giles} & \text{$1,219$}\\ \text{120 Grooming Supplies} & \text{$1,368$}\\ \text{125 Office Equipment} & \text{$8,467$}\\ \text{130 Office Furniture} & \text{$3,396$}\\ \text{135 Computer Equipment} & \text{$2,730$}\\ \text{140 Grooming Equipment} & \text{$1,974$}\\ \text{145 Kennel Equipment} & \text{$7,412$}\\ \text{201 Accts. Pay. - Able Store Equipment} & \text{$3,876$}\\ \text{205 Accts. Pay. - Dogs & - Cats Inc.} & \text{$2,746$}\\ \text{207 Accts. Pay. - Pet Gourmet} & \text{$1,281$}\\ \text{301 Abe Shultz, Capital} & \text{$30,928$}\\ \text{305 Abe Shultz, Withdrawals} & \text{$1,900$}\\ \text{310 Income Summary} & \text{\_\_\_}\\ \text{401 Boarding Revenue} & \text{$11,989$}\\ \text{405 Grooming Revenue} & \text{$4,420$}\\ \text{501 Advertising Expense} & \text{$3,934$}\\ \text{505 Equipment Repair Expense} & \text{943}\\ \text{510 Maintenance Expense} & \text{$2,483$}\\ \text{520 Rent Expense} & \text{$8,850$}\\ \text{530 Utilities Expense} & \text{$3,836$}\\ \end{array} $$ 1. Prepare a work sheet for the month ended September 30, 20--. 2. Prepare an income statement for the period. 3. Prepare a statement of changes in owner’s equity. Abe Shultz made an additional investment of $2,500 during the period. 4. Prepare a balance sheet in report form.

Juanita Ortega operates Outback Guide Service. She uses the following accounts to record and summarize her business transactions.

$$\begin{array}{ll} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} \\ \text{301 Juanita Ortega, Capital}\\ \text{105 Accounts Receivable}-\text{Mary Johnson}\\ \text{302 Juanita Ortega, Withdrawals}\\ \text{401 Guide Service Revenue}\\ \text{150 Rafting Equipment}\\ \text{505 Maintenance Expense}\ \text{205 Accounts Payable}-\text{Peak Equipment Inc.}\\ \text{515 Rent Expense}\\ \text{520 Utilities Expense}\\ \end{array}$$

Juanita Ortega is the owner of a professional guide service called Outback Guide Service. Use a form similar to the one below. Complete these steps for each of the following transactions: 1. Identify the accounts affected. 2. Write the amount of the increase (+) or decrease (-) in the space provided on the form in your working papers. 3. Determine the new balance for each account.

$$\begin{matrix} \text{ } & \text{ } & \text{ } & \text{Assets} & \text{ } & \text{ } & \text{$=$} & \text{Liabilities} & \text{$+$} & \text{Owner’s Equity}\\ \hline \text{Trans.} & \text{Cash in} & \text{Accts.} & \text{Hiking} & \text{Rafting} & \text{Office} & \text{$=$} & \text{Accounts} & \text{$+$} & \text{Juanita}\\ \text{ } & \text{Bank} & \text{Rec.} & \text{Equip.} & \text{Equip.} & \text{Equip.} & \text{ } & \text{Payable} & \text{ } & \text{Ortega,}\\ \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{Capital}\\ \end{matrix}$$

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 3} & \text{1. Ms. Ortega, the owner, opened a checking account for the business by depositing $\$60,000$ of her personal funds.}\\ \text{6} & \text{2. Paid by check the monthly rent of $\$3,000$.}\\ \text{8} & \text{3. Bought hiking equipment for the business by writing a check for $\$3,000$.}\\ \text{9} & \text{4. Purchased $\$24,000$ of rafting equipment by writing a check. }\\ \text{11} & \text{5. Purchased office equipment on account for $\$4,000$.}\\ \text{15} & \text{6. Received payment for guide services, $\$2,500$.}\\ \text{18} & \text{7. Ms. Ortega contributed a desk valued at $\$450$ to the business.}\\ \text{21} & \text{8. Withdrew $\$3,000$ cash from the business for personal use.}\\ \text{26} & \text{9. Wrote a check to a creditor as partial payment on account, $\$1,500$. }\\ \text{30} & \text{10. Took a group on a tour and agreed to accept payment later, $\$1,200$.}\\ \end{array}$$

Greg Failla owns Showbiz Video. He uses the following accounts to record business transactions.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accounts Payable—}\\ \text{105 Accounts Receivable—} & \text{Computer Horizons}\\ \text{Gabriel Cohen} & \text{207 Accounts Payable—}\\ \text{110 Accounts Receivable—} & \text{New Media Suppliers}\\ \text{James Coletti} & \text{301 Greg Failla, Capital}\\ \text{140 Computer Equipment} & \text{305 Greg Failla, Withdrawals}\\ \text{145 Video Tapes} & \text{401 Video Rental Revenue}\\ \text{ } & \text{405 VCR Rental Revenue}\\ \text{ } & \text{505 Equipment Repair Expense}\\ \text{ } & \text{520 Rent Expense}\\ \text{ } & \text{530 Utilities Expense}\\ \end{matrix}$$

For each transaction: 1. Prepare a T account for each account listed above. 2. Analyze and record each of the following transactions using the appropriate T accounts. Identify each transaction by number. 3. After recording all transactions, compute a balance for each account. 4. Test for the equality of debits and credits.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{1. Greg Failla invested $\$ 17,500$ cash in Showbiz Video.}\\ \text{3} & \text{2. Purchased computer equipment on account from Computer Horizons for $\$ 2,400$.}\\ \text{8} & \text{3. Purchased videos on account from New Media Suppliers for $\$ 375.$}\\ \text{10} & \text{4. Paid monthly rent of $\$ 750$, Check 1183.}\\ \text{13} & \text{5. Wrote Check 1184 to pay for new videos, $\$ 265$.}\\ \text{14} & \text{6. Sent a bill for $\$ 67$ to Gabriel Cohen for a VCR rental.}\\ \text{16} & \text{7. Deposited the receipts from video rentals, $\$ 233$.}\\ \text{19} & \text{8. Paid the gas and electric bill of $\$ 125,$ Check $1185 .$}\\ \text{21} & \text{9. Sent Check 1186 for $\$ 375$ to New Media Suppliers as payment on account.}\\ \text{22} & \text{10. Greg Failla withdrew $\$ 150$ for his personal use, Check $1187 .$}\\ \text{25} & \text{11. Paid $\$ 45$ for $\mathrm{VCR}$ repair, Check 1188.}\\ \text{30} & \text{12. Deposited VCR rental receipts of $\$ 264$ in the bank.}\\ \end{array}$$

Evaluate the radical expression, and express the result in the form a + bi. $\sqrt{\frac{1}{3}} \sqrt{-27}$

a. What is meant by reconciling the petty cash fund? b. What accounts are debited when replenishing a petty cash fund?

Ronald Hicks owns and operates Wilderness Rentals. The following accounts are needed to journalize the month’s transactions.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{301 Ronald Hicks, Capital}\\ \text{105 Accts. Rec. - Helen Katz} & \text{305 Ronald Hicks, Withdrawals}\\ \text{110 Accts. Rec. - Polk and Co.} & \text{310 Income Summary}\\ \text{120 Office Equipment} & \text{401 Equipment Rental Revenue}\\ \text{125 Camping Equipment} & \text{501 Advertising Expense}\\ \text{201 Accts. Pay. - Adventure} & \text{505 Maintenance Expense}\\ \text{Equipment Inc.} & \text{515 Rent Expense}\\ \text{203 Accts. Pay. - Digital Tech} & \text{520 Salaries Expense}\\ \text{Computers} & \text{525 Utilities Expense}\\ \text{205 Accts. Pay. - Greg Mollaro} & \text{ }\\ \end{matrix}$$

Record the following transactions on page 1 of the general journal in your working papers. For each transaction: 1. Enter the date. Use the current year. 2. Enter the name of the account debited. 3. Enter the amount of the debit. 4. Enter the name of the account credited. 5. Enter the amount of the credit. 6. Enter a source document reference.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Wrote Check 310 for the part-time secretary's salary, $\$ 270 .$}\\ \text{3} & \text{Bought $\$ 2,000$ of camping equipment on account from Adventure Equipment Inc., Invoice 320.}\\ \text{5} & \text{Received $\$ 500$ from a client for equipment rental, Receipt $150 .$}\\ \text{7} & \text{Wrote Check 311 to pay the electricity bill of $\$ 110$.}\\ \text{11} & \text{Billed a client, Polk and Co., $\$ 1,700$ for rental equipment, Sales Invoice 262.}\\ \text{12} & \text{Ronald Hicks withdrew $\$ 800$ for personal use, Check $312 .$}\\ \text{14} & \text{Bought a $\$ 300$ scanner for the office computer from Digital Tech Computers, on account, Invoice 270.}\\ \text{16} & \text{Wrote Check 313 for $\$ 1,000$ as an installment payment toward the amount owed to Adventure Equipment Inc. }\\ \text{25} & \text{Received $\$ 1,700$ from Polk and Co. in payment on their account, Receipt $151 .$}\\ \text{30} & \text{Paid Digital Tech Computers $\$ 300$ for the amount owed, Check $314 .$}\\ \end{array}$$

The six steps for recording a business transaction in the general journal are shown below, out of order. In your working papers or on a blank sheet of paper, indicate the proper order of these steps. A. Amount of the credit B. Name of the account credited C. Source document reference D. Date of the transaction E. Amount of the debit F. Name of the account debited

The chart of accounts for Outback Guide Service follows.

$$\begin{array}{ll} \mathbf{\text{General Ledger }} & \text{ }\\ \text{101 Cash in Bank} & \text{301 Juanita Ortega, Capital}\\ \text{115 Accts. Rec. - Podaski} & \text{302 Juanita Ortega, Withdrawals}\\ \text{Systems Inc.} & \text{401 Guide Service Revenue}\\ \text{140 Computer Equipment} & \text{501 Advertising Expense}\\ \text{145 Hiking Equipment} & \text{ }\\ \text{150 Rafting Equipment} & \text{ }\\ \text{205 Accts. Pay. - Peak Equipment Inc.} & \text{ }\\ \text{207 Accts. Pay. - Premier Processors} & \text{ }\\ \end{array}$$

1. In your working papers, open an account in the general ledger for each account in the chart of accounts. 2. Record the following transactions on page 1 of the general journal. 3. Post each journal entry to the appropriate accounts in the ledger. 4. Prove the ledger by preparing a trial balance.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \text{Mar. 1} & \text{Invested \$20,000 in cash and transferred rafting equipment }\\ \text{ } & \text{valued at \$5,000 to the business, Memorandum 35.}\\ \text{3} & \text{Purchased \$600 in hiking equipment on account from Peak}\\ \text{ } & \text{Equipment Inc., Invoice 101.}\\ \text{5} & \text{Bought a \$2,800 computer from Premier Processors and agreed}\\ \text{ } & \text{to pay for it within 60 days, Invoice 616.}\\ \text{7} & \text{Deposited \$700 cash received from clients, Receipts 310–315.}\\ \text{9} & \text{Paid \$400 to the Daily Courier for an ad, Check 652.}\\ \text{12} & \text{Sent a bill for \$900 to Podaski Systems Inc. for conducting a}\\ \text{ } & \text{group rafting trip for them, Sales Invoice 352.}\\ \text{15} & \text{Juanita Ortega wrote a check for \$800 for personal use, Check 653.}\\ \text{18} & \text{Paid Premier Processors \$1,400 to apply on account, Check 654.}\\ \text{22} & \text{Received \$900 from Podaski Systems Inc. in full payment for}\\ \text{ } & \text{the amount owed, Receipt 316.}\\ \text{27} & \text{Bought a \$500 television ad with LIVE TV, Check 655.}\\ \text{28} & \text{Paid Peak Equipment Inc. \$600 by writing Check 656. }\\ \end{array}$$

Calculate the total change in accounts payable.