Abe Shultz owns Kits & Pups Grooming and uses the following accounts: $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accounts Payable—}\\ \text{115 Accounts Receivable—} & \text{Dogs & Cats Inc.}\\ \text{Martha Giles} & \text{301 Abe Shultz, Capital}\\ \text{125 Office Equipment} & \text{ }\\ \text{130 Office Furniture} & \text{ }\\ \text{140 Grooming Equipment} & \text{ }\\ \end{matrix} $$ For each transaction: 1. In your working papers, prepare a T account for each account listed. 2. Using the appropriate T accounts, analyze and record each of the following business transactions. Identify each transaction by number. 3. After recording all transactions, write the word Balance on the normal balance side of each T account. Then compute and record the balance for each account. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 1} & \text{1. Abe Shultz invested an additional $\$45,000$ cash in his business.}\\ \text{5} & \text{2. Bought grooming equipment on account from Dogs & Cats Inc. for $\$8,500$.}\\ \text{10} & \text{3. Purchased an office lamp for $\$85$, Check 150.}\\ \text{14} & \text{4. Abe Shultz transferred his personal typewriter, worth $\$200$, to the business.}\\ \text{19} & \text{5. Made a $\$3,000$ payment on the grooming equipment bought on account, Check 151.}\\ \text{22} & \text{6. Sold the typewriter on account to Martha Giles for $\$200$.}\\ \text{29} & \text{7. Bought a photocopier for $\$1,500$, Check 152.}\\ \text{31} & \text{8.Received a $\$100$ payment for the typewriter sold on account.}\\ \end{array} $$

Juanita Ortega runs Outback Guide Service. The accounts she uses to record and report business transactions are listed below.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accounts Payable—}\\ \text{105 Accounts Receivable—} & \text{Peak Equipment Inc.}\\ \text{Mary Johnson} & \text{207 Accounts Payable—}\\ \text{130 Office Equipment} & \text{Premier Processors}\\ \text{140 Computer Equipment} & \text{301 Juanita Ortega, Capital}\\ \text{145 Hiking Equipment} & \text{ }\\ \text{150 Rafting Equipment} & \text{ }\\ \end{matrix}$$

For each transaction: 1. In your working papers, prepare a T account for each account. 2. Analyze and record each of the following business transactions in the appropriate T accounts. Identify each transaction by number. 3. After recording all transactions, compute and record the account balance on the normal balance side of each T account. 4. Add the balances of those accounts with normal debit balances. 5. Add the balances of those accounts with normal credit balances. 6. Compare the two totals. Are they the same?

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 2} & \text{1. Juanita Ortega transferred an additional $\$53,250$ from her personal savings account into the business checking account.}\\ \text{6} & \text{2. Bought hiking equipment for $\$550$, Check 367.}\\ \text{7} & \text{3. Bought rafting equipment on account from Peak Equipment Inc. for $\$2,675$.}\\ \text{11} & \text{4. Juanita Ortega transferred her own computer, valued at $\$850$, to the business. }\\ \text{16} & \text{5. Bought a cash register for the office on account from Premier Processors for $\$1,250$.}\\ \text{19} & \text{6. Sold the computer on credit for $\$850$ to Mary Johnson.}\\ \text{22} & \text{7. Paid $\$500$ on account to Peak Equipment Inc., Check 368.}\\ \text{24} & \text{8. Purchased shelves for the office for $\$650$, Check 369.}\\ \text{28} & \text{9. Paid $\$1,250$ on account to Premier Processors, Check 370.}\\ \text{31} & \text{10. Bought rafting oars for $\$175$, Check 371.}\\ \end{array}$$

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.

Richard Tang owns and operates a job placement service, Job Connect. The T accounts below summarize several business transactions for May. Use a form similar to the one presented below. For each of the 10 transactions: 1. Identify the account debited, and record the account name in the appropriate column. 2. Indicate whether the account debited is being increased or decreased. 3. Identify the account credited, and write the account name in the appropriate column. 4. Indicate whether the account credited is being increased or decreased. 5. Write a short description of the transaction.

$$\begin{matrix} \text{ } & \text{(1)} & \text{(2)} & \text{(3)} & \text{(4)} & \text{(5)}\\ \hline \text{Trans} & \text{Account} & \text{Increase (I)} & \text{Account} & \text{Increase (I)} & \text{Description}\\ \text{No.} & \text{Debited} & \text{or Decrease (D)} & \text{Credited} & \text{or Decrease (D)} & \text{ }\\ \hline \text{1} & \text{Cash in} & \text{I} & \text{Richard} & \text{I} & \text{Richard Tang}\\ \text{ } & \text{Bank} & \text{ } & \text{Tang,} & \text{ } & \text{invested}\\ \text{ } & \text{ } & \text{ } & \text{Capital} & \text{ } & \text{$\$ 15,000$ in}\\ \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{the business.}\\ \end{matrix}$$

$${\text{Cash in Bank}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(1) $15,000$} & \text{(4) $1,225$}\\ \text{(9) 225} & \text{(6) 900}\\ \text{ } & \text{(7) 995}\\ \text{ } & \text{(8) $2,000$}\\ \end{matrix}} \quad \quad {\text{Accounts Receivable}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(5) 225} & \text{(9) 225}\\ \end{matrix}}$$

$${\text{Office Equipment}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(2) 225} & \text{(5) 225}\\ \text{(3) 8,000} & \text{ }\\ \text{(4) 1,225} & \text{ }\\ \end{matrix}} \quad \quad {\text{Office Furniture}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(6) 900} & \text{ }\\ \text{(10) 145} & \text{ }\\ \end{matrix}}$$

$${\text{Computer Equipment}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(7) 995} & \text{ }\\ \end{matrix}} \quad \quad {\text{Accounts Payable}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$-$} & \text{$+$}\\ \text{(8) 2,000} & \text{(3) 8,000}\\ \text{ } & \text{(10) 145}\\ \end{matrix}}$$

$$\text{Richard Tang, Capital}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$-$} & \text{$+$}\\ \text{ } & \text{(1) 15,000}\\ \text{ } & \text{(2) 225}\\ \end{matrix}$$

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

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{201 Accounts Payable—}\\ \text{110 Accounts Receivable—} & \text{Allen Vacuum Systems}\\ \text{Valley Auto} & \text{301 Regina Delgado, Capital}\\ \text{125 Office Equipment} & \text{ }\\ \text{130 Office Furniture} & \text{ }\\ \text{135 Car Wash Equipment} & \text{ }\\ \end{matrix}$$

For each transaction: 1. Determine which accounts are affected. 2. Prepare T accounts for the accounts affected. 3. Enter the debit and credit amounts in the T accounts.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 5} & \text{1. Regina Delgado invested an additional $\$40,000$ cash in her business.}\\ \text{12} & \text{2. Bought another car wash system on account for $\$27,000$ from Allen Vacuum Systems.}\\ \text{17} & \text{3. Regina Delgado transferred some of her personal office furniture, valued at $\$3,750$, to her business.}\\ \text{24} & \text{4. Hot Suds Car Wash purchased additional office equipment for $\$7,500$. Payment was made by check.}\\ \text{29} & \text{5. Hot Suds Car Wash sold some surplus car washing equipment on account to Valley Auto for $\$1,200$.}\\ \end{array}$$

Regina Delgado, owner of Hot Suds Car Wash, uses these accounts:

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Wash Revenue}\\ \text{125 Office Equipment} & \text{510 Maintenance Expense}\\ \text{205 Accounts Payable—} & \text{520 Rent Expense}\\ \text{O’Brian’s Office Supply} & \text{ }\\ \text{301 Regina Delgado, Capital} & \text{ }\\ \text{305 Regina Delgado, Withdrawals} & \text{ }\\ \end{matrix}$$

In your working papers: 1. Determine which accounts are affected for each transaction. 2. Prepare T accounts for the accounts affected. 3. Enter the amount of the debit and the amount of the credit in the T accounts.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 7} & \text{1. Received a check for $\$1,675$ for car wash services.}\\ \text{12} & \text{2. Paid the monthly rent of $\$ 450$ by writing Check 212 .}\\ \text{15} & \text{3. Regina Delgado withdrew $\$ 250$ for her personal use, Check 213.}\\ \text{29} & \text{4. Had the computer repaired at O'Brian's Office Supply for $\$ 245$ and was given until next month to pay. }\\ \end{array}$$

As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions: a. Debit Equipment and credit Cash. b. Debit Dividends and credit Cash. c. Debit Wages Payable and credit Cash. d. Debit Equipment and credit Common Stock. e. Debit Cash and credit Unearned Revenue. f. Debit Advertising Expense and credit Cash. g. Debit Cash and credit Service Revenue.

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

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

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.

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

a. In a statement of changes in owner’s equity, what items are totaled in the “Add” section? b. What items are subtracted from the subtotal?

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.

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