Refer to the scenario described in Problem 2-1A.

Problem 2.1

obias Eaden started a sole proprietorship named Sky High Ads. A customer’s message can be displayed on an airplane banner across the city. The following are Sky High Ad’s business activities during the month of November 2017:
Nov
1. Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads.
3. Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance.
7. Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business.
9. Purchased $5,000 of supplies on credit. 

13. Provided services to a customer for a marriage proposal and collected $16,000 on credit. 

17. Paid $3,000 wages to a pilot. 

21. Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15. 

23. Paid for half of the account payable from the November 9 transaction. 

27. Purchased $20,000 of new aircraft equipment by paying $15,000 cash and trading in old aircraft equipment with a recorded cost of $5,000. 

30. Withdrew $3,200 cash from the business for personal use.

Required
1. Set up the following general ledger accounts using T-accounts: Cash; Accounts Receivable; Sup- plies; Airplane; Aircraft Equipment; Building; Land; Accounts Payable; Long-Term Notes Payable; Tobias Eaden, Capital; Tobias Eaden, Withdrawals; Revenue; and Wages Expense.
2. Post the journal entries into the T-accounts. Identify the date next to each posting. Determine the balance in each account.
3. Prove the accounting equation.