1. : Below are all of the transactions for King Toots music shop, which provides music lessons to customers, during December 2017. Assume that December is the 1^st month of business for King Toots (i.e. all accounts have a beginning balance on December 1^st, 2017 of $0):
   1. 12/1/17: Borrows $75,000 from the bank, signing a note to pay the loan back in 5 years.
   2. 12/1/17: Issued 200 shares of common stock for $30 per share.
   3. 12/1/17: Paid $2,400 cash in advance for the next three months rent (i.e. rent on the shop is $800 per month).
   4. 12/5/17: Purchased equipment (i.e. computers to use in the shop) worth $5,000 on account.
   5. 12/8/17: On December 8^th, provided music lessons to customers on account for $1,980.
   6. 12/20/17: Made a $1,500 cash payment to creditors from transaction d.
   7. 12/31/17: Paid $850 in cash to employees for December wages.
   8. 12/31/18: Received $300 in cash from a customer in advance for 5 lessons to be given in January.

Part 2 Account Identification and transaction analysis: 1) Prepare a transaction worksheet summarizing all of the transactions for King Toots. I have provided a framework for you and completed transaction a. for you as an example. HINT: Make sure the accounting equation remains in balance after entering each transaction!

Assets

=

Liabilities

+

Stockholders Equity

Cash

Accts. Rec. (A/R)

Prepd. rent

Equip.

Accts Payable (A/P)

Deferred Revenue

Notes Payable

Common Stock

Retained Earnings

Rev.

(Exp.)

(Div.)

12/1

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

a.

+$75,000

+$75,000

b.

c.

d.

e.

f.

g.

h.