Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,000; Buildings,$55,000; Salaries Payable, $500; Common Stock,$35,000; Accounts Payable, $2,200; Utilities Expense,$3,700; Prepaid Insurance, $1,200; Service Revenue,$19,500; Accounts Receivable, $4,200; Cash,$3,500; Salaries Expense, $6,400; Retained Earnings,$17,800. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.

Pirates Incorporated had the following balances at the beginning of September.

$$\begin{matrix} \text{Accounts} & \text{Debits} & \text{Credits}\\ \text{Cash} & \text{$\$ 6,500$}\\ \text{Accounts Receivable} & \text{$2,500$}\\ \text{Supplies} & \text{$7,600$}\\ \text{Land} & \text{$11,200$}\\ \text{Accounts Payable} & \text{ } & \text{$\$ 7,500$}\\ \text{Notes Payable} & \text{ } & \text{$3,000$}\\ \text{Common Stock} & \text{ } & \text{$9,000$}\\ \text{Retained Earnings} & \text{ } & \text{$8,300$}\\ \end{matrix}$$

The following transactions occur in September.

$$\begin{matrix} \text{September 1} & \text{Provide services to customers for cash, \$4,700.}\\ \text{September 2} & \text{Purchase land with a long-term note for \$6,400 from Crimson Company.}\\ \text{September 4} & \text{Receive an invoice for \$500 from the local newspaper for an advertisement}\\ \text{ } & \text{that appeared on September 2.}\\ \text{September 8} & \text{Provide services to customers on account for \$6,000.}\\ \text{September 10} & \text{Purchase supplies on account for \$1,100.}\\ \text{September 13} & \text{Pay \$4,000 to Crimson Company for a long-term note.}\\ \text{September 18} & \text{Receive \$5,000 from customers on account.}\\ \text{September 20} & \text{Pay \$900 for September's rent.}\\ \text{September 30} & \text{Pay September's utility bill of \$2,000.}\\ \text{September 30} & \text{Pay employees \$4,000 for salaries for the month of September.}\\ \text{September 30} & \text{Pay a cash dividend of \$1,100 to shareholders.}\\ \end{matrix}$$

1. Record each transaction. 2. Post each transaction to the appropriate T-accounts. 3. Calculate the balance of each account at September 30. 4. Prepare a trial balance as of September 30.

Bearcat Construction begins operations in March and has the following transactions.

$$\begin{array}{llllll} \text{March 1} & \text{Issue common stock for \$21,000.}\\ \text{March 5} & \text{Obtain \$9,000 loan from the bank by signing a note.}\\ \text{March 10} & \text{Purchase construction equipment for \$25,000 cash.}\\ \text{March 15} & \text{Purchase advertising for the current month for \$1,100 cash.}\\ \text{March 22} & \text{Provide construction services for \$18,000 on account.}\\ \text{March 27} & \text{Receive \$13,000 cash on account from March 22 services.}\\ \text{March 28} & \text{Pay salaries for the current month of \$6,000.}\\ \end{array}$$

Using the following information, prepare a trial balance. Assume all asset, dividend, and expense accounts have debit balances and all liability, stockholders' equity, and revenue accounts have credit balances. List the accounts in the following order: assets, liabilities, stockholders' equity, dividends, revenues, and expenses.

$$\begin{array}{ll}{\text { Cash }} & {\$ 6,100} \\ {\text { Salaries Payable }} & {700} \\ {\text { Prepaid Rent }} & {900} \\ {\text { Accounts Payable }} & {2,000} \\ {\text { Retained Earnings }} & {2,000} \\ {\text { Salaries Expense }} & {3,000} \\ {\text { Dividends }} & {500} \\ {\text { Rent Expense }} & {2,000} \\ {\text { Accounts Receivable }} & {4,400} \\ {\text { Common Stock }} & {6,200} \\ {\text { Service Revenue }} & {7,100} \\ {\text { Advertising Expense }} & {1,100}\end{array}$$

Terapin Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $23,400. 2. Provide services to customers and receive cash of$6,800. 3. Pay the current month's rent of $1,300. 4. Purchase office supplies on account for$1,000. 5. Pay employee salaries of $2,100 for the current month. Record the transactions. Terapin uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense.

Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.

$$\begin{array}{ll} \text{1. January 1} & \text{Issue 10,000 shares of common stock in exchange for \$42,000 in cash.}\\ \text{2. January 5} & \text{Purchase land for \$24,000. A note payable is signed for the full amount.}\\ \text{3. January 9} & \text{Purchase storage container equipment for \$9,000 cash.}\\ \text{4. January 12} & \text{Hire three employees for \$3,000 per month.}\\ \text{5. January 18} & \text{Receive cash of \$13,000 in rental fees for the current month.}\\ \text{6. January 23} & \text{Purchase office supplies for \$3,000 on account.}\\ \text{7. January 31} & \text{Pay employees \$9,000 for the first month's salaries.}\\ \end{array}$$

Required: 1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense. 2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero. 3. After calculating the ending balance of each account, prepare a trial balance.

Jake owns a lawn maintenance company, and Luke owns a machine repair shop. For the month of July, the following transactions occurred.

$$\begin{matrix} \text{July 3} & \text{Jake provides lawn services to Luke's repair shop on account, \$500.}\\ \text{July 6} & \text{One of Jake's mowers malfunctions. Luke provides repair services to Jake on account, \$450.}\\ \text{July 9} & \text{Luke pays \$500 to Jake for lawn services provided on July 3.}\\ \text{July 14} & \text{Luke borrows \$600 from Jake by signing a note.}\\ \text{July 18} & \text{Jake purchases advertising in a local newspaper for the remainder of July and pays cash, \$110.}\\ \text{July 20} & \text{Jake pays \$450 to Luke for services provided on July 6.}\\ \text{July 27} & \text{Luke performs repair services for other customers for cash, \$800.}\\ \text{July 30} & \text{Luke pays employee salaries for the month, \$300.}\\ \text{July 31} & \text{Luke pays \$600 to Jake for money borrowed on July 14.}\\ \end{matrix}$$

Record the transactions for Jake's Lawn Maintenance Company.

Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions. 1. Issue 10,000 shares of common stock in exchange for $32,000 in cash. 2. Purchase land for$19,000. A note payable is signed for the full amount. 3. Purchase storage container equipment for $8,000 cash. 4. Hire three employees for$2,000 per month. 5. Receive cash of $12,000 in rental fees for the current month. 6. Purchase office supplies for$2,000 on account. 7. Pay employees $6,000 for the first month's salaries. For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, (1) assets increase and (2) stockholders' equity increases.

Sun Devil Hair Design has the following transactions during the month of February.

$$\begin{matrix} \text{February 2} & \text{Pay \$700 for radio advertising for February.}\\ \text{February 7} & \text{Purchase beauty supplies of \$1,300 on account.}\\ \text{February 14} & \text{Provide beauty services of \$2,900 to customers and receive cash.}\\ \text{February 15} & \text{Pay employee salaries for the current month of \$900.}\\ \text{February 25} & \text{Provide beauty services of \$1,000 to customers on account.}\\ \text{February 28} & \text{Pay utility bill for the current month of \$300.}\\ \end{matrix}$$

Record each transaction. Sun Devil uses the following accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Service Revenue, Advertising Expense, Salaries Expense, and Utilities Expense.

At the beginning of April, Owl Corporation has a balance of $13,000 in the Retained Earnings account. During the month of April, Owl had the following external transactions. 1. Issue common stock for cash,$11,000. 2. Provide services to customers on account, $8,500. 3. Provide services to customers in exchange for cash,$3,200. 4. Purchase equipment and pay cash, $7,600. 5. Pay rent for April,$1,100. 6. Pay employee salaries for April, $3,500. 7. Pay dividends to stockholders,$2,000. Using the external transactions above, compute the balance of Retained Earnings at April 30.

Below are account balances of Ducks Company at the end of September.

$$\begin{array}{lrlr} \text{Accounts} & \text{Balances} & \text{Accounts} & \text{Balances}\\ \hline \text{Cash} & \text{$\$ 25,000$} & \text{Retained Earnings} & \text{$\$ 13,000$}\\ \text{Accounts Receivable} & \text{$14,000$} & \text{Dividends} & \text{$4,000$}\\ \text{Supplies} & \text{$7,000$} & \text{Service Revenue} & \text{$?$}\\ \text{Prepaid Insurance} & \text{$5,000$} & \text{Salaries Expense} & \text{$9,000$}\\ \text{Equipment} & \text{$28,000$} & \text{Insurance Expense} & \text{$8,000$}\\ \text{Accounts Payable} & \text{$7,000$} & \text{Advertising Expense} & \text{$1,100$}\\ \text{Salaries Payable} & \text{$4,000$} & \text{Supplies Expense} & \text{$10,000$}\\ \text{Utilities Payable} & \text{$1,100$} & \text{Entertainment Expense} & \text{$6,000$}\\ \text{Deferred Revenue} & \text{$9,000$} & \text{Utilities Expense} & \text{$1,100$}\\ \text{Common Stock} & \text{$29,000$} & \text{ } & \text{ }\\ \end{array}$$

Prepare a trial balance by placing amounts in the appropriate debit or credit column and determining the balance of the Service Revenue account.

Below is the complete list of accounts of Fightin' Blue Hens Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,200; Buildings,$45,000; Salaries Payable, $400; Common Stock,$25,000; Accounts Payable, $1,700; Utilities Expense,$2,700; Prepaid Insurance, $1,300; Service Revenue,$18,500; Accounts Receivable, $3,200; Cash,$2,500; Salaries Expense, $5,400; Retained Earnings,$15,700.

Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.

Prove that the maximal entries of a positive definite, symmetric, real matrix are on the diagonal.

Dungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43 million and current liabilities of$4.90 million. How, if at all, will a $900,000 cash purchase of inventory affect the current ratio? How, if at all, will a$900,000 purchase of inventory on account affect the current ratio?