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.

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

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

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.

Consider the following transactions. 1. Receive cash from customers, $15,000. 2. Pay cash for employee salaries,$9,000. 3. Pay cash for rent, $3,000. 4. Receive cash from sale of equipment,$8,000. 5. Pay cash for utilities, $1,000. 6. Receive cash from a bank loan,$4,000. 7. Pay cash for advertising, $7,000. 8. Purchase supplies on account,$3,000. Required: Post transactions to the Cash T-account and calculate the ending balance. The beginning balance in the Cash T-accow1t is $5,000.

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.

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.

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

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.

Consider the recorded transactions below.

$$\begin{array}{l} \text{ } & \text{Debit} & \text{Credit}\\ \text{1. Accounts Receivable} & \text{8,400} & \text{ }\\ \text{Service Revenue} & \text{ } & \text{8,400}\\ \text{2. Supplies} & \text{2,300} & \text{ }\\ \text{Accounts Payable} & \text{ } & \text{2,300}\\ \text{3. Cash} & \text{10,200} & \text{ }\\ \text{Accounts Receivable} & \text{ } & \text{10,200}\\ \text{4. Advertising Expense} & \text{1,000} & \text{ }\\ \text{Cash} & \text{ } & \text{1,000}\\ \text{5. Accounts Payable} & \text{3,700} & \text{ }\\ \text{Cash} & \text{ } & \text{3,700}\\ \text{6. Cash} & \text{1,100} & \text{ }\\ \text{Deferred Revenue} & \text{ } & \text{1,100}\\ \end{array}$$

Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $3,400; Accounts Receivable,$4,200; Supplies, $400; Accounts Payable,$3,500; Deferred Revenue, $300. Service Revenue and Advertising Expense each have a beginning balance of zero.

Boilermaker House Painting Company incurs the following transactions for September.

$$\begin{matrix} \text{1. September 3} & \text{Paint houses in the current month for \$20,000 on account.}\\ \text{2. September 8} & \text{Purchase painting equipment for \$21,000 cash.}\\ \text{3. September 12} & \text{Purchase office supplies on account for \$3,500.}\\ \text{4. September 15} & \text{Pay employee salaries of \$4,200 for the current month.}\\ \text{5. September 19} & \text{Purchase advertising to appear in the current month for \$1,000 cash.}\\ \text{6. September 22} & \text{Pay office rent of \$5,400 for the current month.}\\ \text{7. September 26} & \text{Receive \$15,000 from customers in (1) above.}\\ \text{8. September 30} & \text{Receive cash of \$6,000 in advance from a customer who plans to have }\\ \text{ } & \text{his house painted in the following month.}\\ \end{matrix}$$

1. Record each transaction. Boilermaker uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Deferred Revenue, Common Stock, Retained Earnings, Service Revenue, Salaries Expense, Advertising Expense, and Rent Expense. 2. Post each transaction to T-accounts and compute the ending balance of each account. At the beginning of September, the company had the following account balances: Cash, $46,100; Accounts Receivable,$1,700; Supplies, $500; Equipment,$7,400; Accounts Payable, $1,200; Common Stock,$25,000; Retained Earnings, $29,500. All other accounts had a beginning balance of zero. 3. After calculating the ending balance of each account, prepare a trial balance.

Below is the complete list of accounts of Sooner Company and the related balance at the end of April. All accounts have their normal debit or credit balance. Cash, $3,900; Prepaid Rent,$7,400; Accounts Payable $4,300; Common Stock,$40,000; Service Revenue, $25,400; Salaries Expense,$8,200; Accounts Receivable, $6,100; Land,$60,000; Deferred Revenue, $2,300; Retained Earnings,$23,000; Supplies Expense, $9,400. 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.

Below is a list of activities for Purple Cow Incorporated.

$$\begin{array}{c} \text{Transaction} & \text{Assets =} & \text{Liabilities + } & \text{Stockholders' Equity}\\ \text{1. Provide services to customers} & \text{ } & \text{ } & \text{ }\\ \text{on account, $\$ 1,600$ .} & \text{$+\$ 1,600$ =} & \text{$\$ 0$ +} & \text{$+\$ 1,600$}\\ \text{2. Pay $\$ 400$ for current month's rent.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{3. Hire a new employee, who will} & \text{ } & \text{ } & \text{ }\\ \text{be paid $\$ 500$ at the end of each} & \text{ } & \text{ } & \text{ }\\ \text{month.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{4. Pay $\$ 100$ for advertising aired in} & \text{ } & \text{ } & \text{ }\\ \text{the current period.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{5. Purchase office supplies for} & \text{ } & \text{ } & \text{ }\\ \text{$\$ 400$ cash.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{6. Receive cash of $\$ 1,000$ from} & \text{ } & \text{ } & \text{ }\\ \text{customers in (1) above.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{7. Obtain a loan from the bank for} & \text{ } & \text{ } & \text{ }\\ \text{$\$ 7,000$ .} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{8. Receive a bill of $\$ 200$ for utility} & \text{ } & \text{ } & \text{ }\\ \text{costs in the current period.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{9. Issue common stock for} & \text{ } & \text{ } & \text{ }\\ \text{$\$ 10,000$ cash.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{10. Pay $\$ 500$ to employee in (3)} & \text{ } & \text{ } & \text{ }\\ \text{above.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{Totals} & \text{\_\_\_\_\_ = } & \text{\_\_\_\_\_ +} & \text{\_\_\_\_\_ }\\ \end{array}$$

For each activity, indicate the impact on the accounting equation. After doing so for all transactions, ensure that the accounting equation remains in balance.

Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions.

$$\begin{array}{llrr} \text{External Transaction} & \text{Accounts} & \text{Debit} & \text{Credit}\\ \hline \text{1. Owners invest $\$ 15,000$ in the} & \text{Common Stock} & \text{15000} & \text{ }\\ \text{company and receive common stock.} & \text{Cash} & \text{ } & \text{15000}\\ \text{2. Receive cash of $\$ 4,000$ for services} & \text{Cash} & \text{4000} & \text{ }\\ \text{provided in the current period.} & \text{Service Revenue} & \text{ } & \text{4000}\\ \text{3. Purchase office supplies on account,} & \text{Supplies} & \text{300} & \text{ }\\ \text{$\$ 300$ .} & \text{Cash} & \text{ } & \text{300}\\ \text{4. Pay $\$ 600$ for next month's rent.} & \text{Rent Expense} & \text{600} & \text{ }\\ \text{ } & \text{Cash} & \text{ } & \text{600}\\ \text{5. Purchase office equipment with} & \text{Cash} & \text{2200} & \text{ }\\ \text{cash of $\$ 2,200$ .} & \text{Equipment} & \text{ } & \text{2200}\\ \end{array}$$

Required: Assess whether the junior accountant correctly proposes how to record each transaction. If incorrect, provide the correction.

Below are the external transactions for Shockers Incorporated. 1. Issue common stock in exchange for cash. 2. Purchase equipment by signing a note payable. 3. Provide services to customers on account. 4. Pay rent for the current month. 5. Pay insurance for the current month. 6. Collect cash from customers on account.

$$\begin{matrix} \text{ } & \text{Assets =} & \text{Liabilities +} & \text{Stockholders' Equity}\\ \text{1.} & \text{Increase =} & \text{No effect +} & \text{Increase}\\ \text{2.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{3.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{4.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{5.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \text{6.} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ \end{matrix}$$

Analyze each transaction. Under each category in the accounting equation, indicate whether the transaction increases, decreases, or has no effect. The first item is provided as an example.