1. Make a journal entry for each transaction on a sheet of paper. Include a brief explanation and a reference to a source document. Determine the balance of cash by setting up a T-account.

Set up a blank journal on a sheet of paper. Use todays date for the first one and then add three days for the next one and so on.

a. Obtained cash of $500,000 cash from investors in exchange for 5,000 shares of common stock. The company name is Thunder Road Enterprises. Made a bank deposit for $500,000 and received deposit slip #1.

b. Used cash of $48,000; $85,000 and $125,000 to prepay the rent on a downtown Orlando office for 12-monts, purchase office computers expected to last for 5-years and inventory. Received receipts #1, #2 and #3.

c. Purchased a fleet of drones, to deliver merchandise to customers, at a cost of $200,000, making a down payment of $50,000 to Drones-R-Us with the balance due in 9-months. Received receipt #4.

d. Provided services to customers on account and sent them Sales Invoice #1 for $75,000. The invoice is due in 30 days.

e. Company employees have earned salaries of $80,000 but wont be paid until next month. Write payroll register as the source doc.

f. Sent an electronic transfer to Drones-R-Us for $10,000. The source document that supports the transfer is ET Receipt #1.

2. Indicate the effects of transactions above on the accounting equation. Use a separate sheet of paper and a plus or minus sign to indicate increases or decreases and name the accounts involved (e.g. Cash, accounts payable, Sales, Wages Expense) as you go.

Assets	= Liabilities	+ Common Stock	+ Retained Earnings	+ Revenues	- Expenses

3. An item or resource that an organization owns or controls that has expected future economic benefits is called a(n)_________________?

4. What is the name of the financial statement that reports revenues earned and expenses incurred for the period ______________________?

5. Shelby Co. has common stock of $2,000 and retained earnings of $5,000 at the beginning of the year. During the year, the company earned revenues of $10,000 on account; incurred operating expenses of $6,500; collected $8,000 of accounts receivable; borrowed $20,000 from a bank; obtained $8,000 of cash from owners for stock and paid $4,500 of cash to the owners as dividends. How much is the ending balances of common stock and retained earnings ___________ and _______________ .

6. A debt or obligation to sacrifice assets to the creditors is called ____________ in accounting and is reported on the _____________________ at the end of the period.

7. List of few of the people who you would expect to use accounting reports to make informed decisions ___________________ and ________________ and _________________________.

8. To make a journal entry you should go through a 5-step thought process. List each of those 5-steps ________________________________ and __________________________________ and _________________________ and ______________________________________ and _____________________.

9. Briefly explain what limited personal liability means within the context of business ownership:

10. Of the following business organization types: sole-proprietorship, partnership, corporation and limited liability corporation; which organizations must pay federal income taxes on their profits each period. My answer is:

11. Henderson Co. purchased $800 of office supplies but only has $200 left over on 1/31/xx. What is the correct end of period adjustment journal entry?

12. LNJ Co. owns equipment costing $120,000. If the salvage value is estimated to be $4,000, the estimated useful life is estimated to be 5 years and the straight-line method is used to depreciate assets make the journal entry for the first full year of depreciation and determine the assets book value at the end of year two.