1. Provide the missing amounts of the accounting equation for each of the following companies.

Elias Patel Assets ? $125,000 Liabilities $33,000 ? Equity $186,000 $63,000

2. Prepare journal entries to record the following transactions. A. November 19, purchased merchandise inventory, on account, $12,000 B. November 29, paid creditor for part of November 19 purchase, $10,000 A. Nov. 19 ? 12,000 ? 12,000

B. Nov. 29 ? 10,000 ? 10,000 3. Prepare journal entries to record the following transactions: A. December 1, collected balance due from customer account, $5,500 B. December 12, paid creditors for supplies purchased last month, $4,200 C. December 31, paid cash dividend to stockholders, $1,000 A. Dec. 1 ? 5,500 ? 5,500

B. Dec. 12. ? 4,200 ? 4,200

C. Dec. 31. ? 1,000 ? 1,000

4. Identify the financial statement on which each of the following account categories would appear: the balance sheet (BS), the income statement (IS), or the retained earnings statement (RE). Indicate the normal balance (Dr for debit; Cr for credit) for each account category.

Financial statement Normal balance

Assets. - - Common stock. - - Dividends. - - Expenses. - - Liabilities. - - Revenue. - -

5. Indicate how changes in the following types of accounts would be recorded (Dr for debit; Cr for credit).

Increase. Decrease

Asset accounts. - - Liability accounts. - - Common stock. - - Revenue. - - Expense. - -

Prepare an unadjusted trial balance, in correct format, from the following alphabetized account information. Assume all the accounts have normal balances.

Trial Balance

Cash Accounts Receivable Supplies Equipment Notes Payable (due next month) Accounts Payable Salaries Payable Common Stock

Dividends Service Revenue Salaries Expense Transportation Expense