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. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Juanita Ortega contributed the following assets to her business: cash, $\$ 1,500 ;$ hiking equipment, $\$ 2,000 ;$ rafting equipment, $\$ 2,500 ;$ and office furniture, $\$ 500 ;$ Memorandum 21.}\\ \text{2} & \text{Issued Check 515 to Town News for a $\$ 75$ ad.}\\ \text{4} & \text{Purchased $\$ 3,000$ in rafting equipment on account from A-1 Adventure Warehouse, Invoice AW45.}\\ \text{6} & \text{A group from Feldman, Jones & Ritter went on a hiking trip. The group was billed $\$ 4,800$ for guide services, Sales Invoice 300.}\\ \text{10} & \text{Paid $\$ 300$ to Dunn's Painting and Interior Co. for painting the office, Check 516. }\\ \text{13} & \text{Made a $\$ 1,000$ payment to A-1 Adventure Warehouse toward the amount owed, Check 517.}\\ \text{15} & \text{Received a check for $\$ 4,800$ from Feldman, Jones 8 Ritter in payment of their account, Receipt 252.}\\ \text{18} & \text{Juanita Ortega paid herself $\$ 600$ by issuing Check 518.}\\ \text{22} & \text{Billed a client, Mary Johnson, $\$ 1,200$ for completing guide services on a hiking expedition, Sales Invoice 301.}\\ \text{25} & \text{Paid the monthly telephone bill for $\$ 175$ by issuing Check 519.}\\ \text{30} & \text{Purchased a $\$ 3,600$ computer system from Premier Processors. Made a down payment for $\$ 1,800$ and agreed to pay the balance within 30 days, Check 520 and Invoice 749.}\\ \end{array} $$

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

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

On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank statement shows a balance of$2,272.36. 3. The statement shows a bank service charge of $20.00. 4. A check from Podaski Systems for$62.44, deposited on October 18, was returned by the bank. There is no fee for handling the NSF check. 5. A deposit of $672.48 made on October 30 does not appear on the bank statement. 6. These checks are outstanding: Check 872 for$126.84 Check 883 for $192.80 Check 881 for$87.66 Check 887 for 68.64 Using the preceding information: 1. Record the service charge and the NSF check in the checkbook. 2. Reconcile the bank statement. 3. Record the service charge and NSF check on page 7 of the general journal. 4. Post the journal entries to the appropriate general ledger accounts.

Greg Failla operates Showbiz Video. The following accounts are used to record business transactions.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{207 Accts. Pay.—New Media Suppliers}\\ \text{105 Accts. Rec.—G. Cohen} & \text{209 Accts. Pay.—Palace Films}\\ \text{110 Accts. Rec.—J. Coletti} & \text{301 Greg Failla, Capital}\\ \text{113 Accts. Rec.—S. Flannery} & \text{305 Greg Failla, Withdrawals}\\ \text{115 Accts. Rec.—Spring} & \text{310 Income Summary}\\ \text{Branch School District} & \text{401 Video Rental Revenue}\\ \text{130 Office Equipment} & \text{405 VCR Rental Revenue}\\ \text{135 Office Furniture} & \text{501 Advertising Expense}\\ \text{140 Computer Equipment} & \text{505 Equipment Repair Expense}\\ \text{145 Video Tapes} & \text{510 Maintenance Expense}\\ \text{150 Video Equipment} & \text{520 Rent Expense}\\ \text{201 Accts. Pay.—Broad Street} & \text{525 Salaries Expense}\\ \text{Office Supply} & \text{530 Utilities Expense}\\ \text{205 Accts. Pay.—Computer} & \text{ }\\ \text{Horizons} & \text{ }\\ \end{matrix}$$

Record the following transactions on page 5 of the general journal in your working papers.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Deposited $\$ 3,400$ in receipts. Of that amount, $\$ 1,900$ was VCR rentals and $\$ 1,500$ was video tape rentals, Receipt 435.}\\ \text{3} & \text{Wrote Check 1250 for $\$ 325$ of equipment repairs.}\\ \text{5} & \text{Purchased $\$ 400$ in video tapes from Palace Films on account, Invoice PF32.}\\ \text{7} & \text{Bought from New Media Suppliers $\$ 2,600$ in video equipment. Made a down payment of $\$ 600$ and agreed to pay the balance in two installments, Check 1251 and Invoice NM101.}\\ \text{10} & \text{Rented videos to Spring Branch School District. The school district agreed to pay $\$ 1,800$ at a later date, Sales Invoice 1650.}\\ \text{12} & \text{Issued Check 1252 for $\$ 750$ to Computer Horizons for the amount owed to them. }\\ \text{15} & \text{Deposited $\$ 5,600$ in receipts. VCR rentals amounted to $\$ 4,400$ and video tape rentals were $\$ 1,200,$ Receipt 436. }\\ \text{18} & \text{Paid Clear Vue Window Cleaners $\$ 100$ for monthly window cleaning, Check 1253.}\\ \text{25} & \text{Made a $\$ 1,000$ installment payment toward the amount owed to New Media Suppliers by issuing Check 1254.}\\ \end{array}$$

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. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Received $\$ 125$ for boarding a client's dog for one week, Receipt 300.}\\ \text{3} & \text{Abe Shultz contributed to the business a computer valued at $\$ 2,500,$ Memorandum 33. }\\ \text{5} & \text{Billed a client, Juan Alvarez, $\$ 80$ for grooming his pets, Sales Invoice 212. }\\ \text{9} & \text{Wrote Check 411 to Allegheny Power Co. for $\$ 150$ in payment for the month's electricity bill.}\\ \text{11} & \text{Abe Shultz withdrew $\$ 700$ for personal use, Check 412.}\\ \text{14} & \text{Purchased kennel equipment for $\$ 2,600$ from Dogs $\&$ Cats Inc., on account, Invoice DC92.}\\ \text{16} & \text{Paid the part-time receptionist's salary of $\$ 400$ by issuing Check 413.}\\ \text{18} & \text{Abe Shultz took from the business for his personal use a ten-key adding machine valued at $\$ 65,$ Memorandum 34.}\\ \text{23} & \text{Juan Alvarez sent a check for $\$ 80$ in full payment of his account, Receipt 301.}\\ \text{28} & \text{Purchased on credit $\$ 250$ in grooming equipment from the Pet Gourmet, Invoice PG333.}\\ \text{31} & \text{Issued Check 414 for $\$ 1,300$ as an installment payment for the amount owed to Dogs & Cats Inc. }\\ \end{array} $$

The general ledger account balances on May 31 for Outback Guide Service are:

$$\begin{array}{lll} \text{101} & \text{Cash in Bank} & \text{$\$ 2,834$}\\ \text{105} & \text{Accts. Rec. - Mary Johnson} & \text{384}\\ \text{125} & \text{Office Supplies} & \text{307}\\ \text{130} & \text{Office Equipment} & \text{$5,902$}\\ \text{135} & \text{Office Furniture} & \text{$2,804$}\\ \text{140} & \text{Computer Equipment} & \text{$3,295$}\\ \text{145} & \text{Hiking Equipment} & \text{922}\\ \text{150} & \text{Rafting Equipment} & \text{$8,351$}\\ \text{205} & \text{Accts. Pay. - Peak Equipment Inc.} & \text{$1,204$}\\ \text{301} & \text{Juanita Ortega, Capital} & \text{$20,419$}\\ \text{302} & \text{Juanita Ortega, Withdrawals} & \text{$1,800$}\\ \text{310} & \text{Income Summary} & \text{\_\_\_}\\ \text{401} & \text{Guide Service Revenue} & \text{$9,179$}\\ \text{501} & \text{Advertising Expense} & \text{795}\\ \text{505} & \text{Maintenance Expense} & \text{125}\\ \text{515} & \text{Rent Expense} & \text{$2,000$}\\ \text{525} & \text{Utilities Expense} & \text{$1,283$}\\ \end{array}$$

Prepare a work sheet for Outback Guide Service for the period ended May 31 in your working papers. Compute the total assets for Outback.

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 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.

Urban sprawl uses much land for housing. The distances between sprawling residential areas and downtown economic areas require the use of automobiles, which pollute the environment and increase traffic. People who cannot afford automobile transportation are disproportionately affected, as they are shut out from either the economic areas or desirable living spaces in the residential areas. Explain how this situation is unsustainable across all three dimensions of sustainability.

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.

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

What is the role of clinical trials in the drug approval process?

Abe Shultz, owner of Kits & Pups Grooming, uses the following accounts to record transactions for the month. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Boarding Revenue}\\ \text{105 Accounts Receivable—} & \text{405 Grooming Revenue}\\ \text{Juan Alvarez} & \text{501 Advertising Expense}\\ \text{140 Grooming Equipment} & \text{505 Equipment Repair Expense}\\ \text{205 Accounts Payable—} & \text{510 Maintenance Expense}\\ \text{Dogs & Cats Inc.} & \text{520 Rent Expense}\\ \text{301 Abe Shultz, Capital} & \text{530 Utilities Expense}\\ \text{305 Abe Shultz, Withdrawals} & \text{ }\\ \end{matrix} $$ For each transaction: 1. Prepare a T account for each account listed. 2. Enter a balance of $15,000 in the Cash in Bank account; also enter a balance of$15,000 in the Abe Shultz, Capital account. 3. Analyze and record each of the following business transactions, using the appropriate T accounts. Identify each transaction by number. 4. After all the business transactions have been recorded, write the word Balance on the normal balance side of each account. 5. Compute and record the balance for each account. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{1. Purchased grooming equipment for $\$ 12,700,$ Check 283 .}\\ \text{10} & \text{2. Wrote Check 284 for advertising, $\$ 125$ .}\\ \text{12} & \text{3. Received $\$ 1,850$ cash for dog boarding services.}\\ \text{15} & \text{4. Paid $\$ 150$ for equipment repair, Check $285 .$}\\ \text{17} & \text{5. Purchased a dog cage on account from Dogs 8 - Cats Inc. for $\$ 75 .$}\\ \text{20} & \text{6. Abe Shultz withdrew $\$ 150$ for personal use, Check 286 .}\\ \text{22} & \text{7. Billed Juan Alvarez for $\$ 775$ covering grooming services for all of the dogs boarded at the kennels he owns. Payment will be received later.}\\ \text{23} & \text{8. Paid the first two weeks' rent by writing Check 287 for $\$ 325 .$}\\ \text{25} & \text{9. Paid the electric bill at a cost of $\$ 115,$ Check 288 .}\\ \end{array} $$

The general ledger for Hot Suds Car Wash shows the following account balances on May 31, the end of the period.

$$\begin{array}{lll} \text{101} & \text{Cash in Bank} & \text{$\$ 9,400$}\\ \text{105} & \text{Accts. Rec. - Linda Brown} & \text{429}\\ \text{110} & \text{Accts. Rec. - Valley Auto} & \text{372}\\ \text{115} & \text{Detailing Supplies} & \text{694}\\ \text{120} & \text{Detergent Supplies} & \text{418}\\ \text{125} & \text{Office Equipment} & \text{$15,195$}\\ \text{130} & \text{Office Furniture} & \text{$2,029$}\\ \text{135} & \text{Car Wash Equipment} & \text{$7,486$}\\ \text{201} & \text{Accts. Pay. - Allen Vacuum Systems} & \text{$4,346$}\\ \text{205} & \text{Accts. Pay. - O'Brian's Office Supply} & \text{$2,730$}\\ \text{301} & \text{Regina Delgado, Capital} & \text{$26,530$}\\ \text{305} & \text{Regina Delgado, Withdrawals} & \text{$2,500$}\\ \text{310} & \text{Income Summary} & \text{ }\\ \text{401} & \text{Wash Revenue} & \text{$7,957$}\\ \text{405} & \text{Wax Revenue} & \text{$5,329$}\\ \text{410} & \text{Interior Detailing Revenue} & \text{$2,970$}\\ \text{501} & \text{Advertising Expense} & \text{$1,940$}\\ \text{505} & \text{Equipment Rental Expense} & \text{$3,836$}\\ \text{510} & \text{Maintenance Expense} & \text{$1,424$}\\ \text{520} & \text{Rent Expense} & \text{$3,500$}\\ \text{530} & \text{Utilities Expense} & \text{639}\\ \end{array}$$

Prepare a work sheet for Hot Suds Car Wash in your working papers. Identify the temporary accounts on the work sheet that have normal credit balances.

Glenda Hohn recently started a day-care center. She uses the following accounts.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{Cash in Bank} & \text{Glenda Hohn, Capital}\\ \text{Accts. Rec.—Tiny Tots Nursery} & \text{Glenda Hohn, Withdrawals}\\ \text{Office Furniture} & \text{Day-Care Fees}\\ \text{Passenger Van} & \text{Utilities Expense}\\ \text{Accts. Pay.—Acme Bus Service} & \text{Van Expense}\\ \end{matrix}$$

In your working papers or on a separate sheet of paper, for each transaction: Determine which accounts are affected. Classify each account. Determine whether the accounts are being increased or decreased. Indicate which account is debited and which account is credited. 1. Bought a passenger van for cash. 2. Paid the telephone bill for the month. 3. Received cash from customers for day-care services.