AutoSave OF iO... 22 0002-REVIEW-PREVIEW-202 Home Insert Draw Page Layout Formulas Data Review View Acrobat Tell me Share Comments Calibrl (Body) v 11 v A O X G Number Insert v Wrap Text 0 O v Delete Paste Av = = = Y Merge & Center E8%, 1 Conditional Format Cell Formatting es Table Styles Format v Sort & Filter Find & Select Analyze Data V F28 fy A B C D L M M 0 S ST U VW Y 2 AA AB AL 10 Score: HMT: Nabar to the T-nett trial balance. The trimmed F ASSETS INCREASE: DEBIT DECREASE: CREDIT H I LIABILITIES INCREASE: CREDIT DECREASE: DEBIT 2 3 OWNER'S EQUITY INCREASE CREDIT DECREASE: DEBIT CR TRANSACTIONS-ANALYZE EACH ONE AND INSERT THE ENTRIES DR 91.000 2.000 101 CASH 100.000 15.000 6 000 201 ACCTS PAYABLE 3.500 301 COMMON STOCK 100.000 1 Lavon Corporationized 100,000 shares of $1.00 par common stock par, receivingcash (See footnote below) 15.000 3.500 100.000 2 The company purchased equipment costing $15,000 paying cash. 3.500 91.000 302 RET. EARNINGS 100.000 3 Supplies were purchased for $4,000, on account. 104 ACCTS RECEIVABLE 5.000 3.000 4 The company paid rent in the amount of $7,500 2.000 OPERATIONS 501 RENT EXPENSE 2.503 401 SERVICE REVENUE 18.000 5 Advertising was purchase or account, $3,000 : . 18.000 2.500 3.000 12.000 1.500 1.000 128.000 121.500 NO 10G SUPPLIES G Salaries were paid to employees in cash, $12,000. 2.503 18.000 7 The company provided $18,000 of services; $6,000 was received in cash and the rest will be received in 30 days. 503 ADVERT. EXPENSE 3.000 110 EQUIPMENT 15.000 8 The company paid $3,500 cash on account 3.000 5 0 101 CASH 0104 ACCTS RECEIVABLE 7 o 106 SUPPLIES 2 1 110 EQUIPMENT 0 112 ACC. DEPR. EQUIP 10 1 201 ACCTS PAYABLE 11 1 301 COMMON STOCK 12 1 302 RET. EARNINGS 13 1 401 SERVICE REVENUE 14 1 501 RENT EXPENSE 15 1 503 ADVERT. EXPENSE 1 16 1 504 SALARY EXPENSE 17 1 509 DEPR. EXPENSE 18 1 510 SUPPLIES EXPENSE 19. TOTALS 20 In Balance? DRECR? 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 9 The company received $5,000 cach from customers, on account 15.000 504 SALARY EXPENSE 12.000 10 Depreciation was recorded in the amount of $1,500. (Adl.) 112 ACC.DEPR LQUIP. 12.000 11 Supplies wereuwd up in the amount af $1,000. Adj.) 509 DEPR. EXPENSE 1.500 NOTE. In practice, the net income would be closed to Retoined Earnings. Eut, for this exercise, Icave Retained Earnings empty 1.500 510 SUPPLIES EXPENSE 1.000 A corporation issued shares of stock to investors. In this example,100,000 shares were issued, and the price per share was $1.00. Cash goes up and common Stock goes up. Here's the entry: 1.000 100.000 CASH COMMOW STOCK 100.000 T-ACCTS + Ready + 100%
