1. Given a random list of accounts with their normal balances, prepare a trial balance for Luxury Gifts Corporation as of December 31, 2019

Common stock $5,500 Accounts Receivable $2,000

Note Payable 3,500 Service Revenue 12,000

Supplies 500 Insurance Expense 700

Prepaid Insurance 1,400 Equipment 9,500

Salary Expense 8,000 Accounts Payable 1,000

Dividends 2,000 Cash 1,000

Utilities Expense 1,000 Retained Earnings 4,100

2. Prepare Journal Entries in good form for the following transactions for the Goodland Company

1. The owner invested cash of $14,000 and office equipment valued at $6,500 into the business and received common stock in exchange

2. Supplies were purchase on account for $1,000

3. Payment of $750 was made for one months rent on the store

4. A client was billed 1,500 for services rendered

5. The company declared and paid a cash dividend of $300

3. Analyze the following transactions. Indicate which accounts are affected and whether they will increase or decrease.

1. Owner investment of cash into the business
2. Payment of a utility bill
3. Purchase of inventory for cash
4. Payment of an accounts payable
5. Performing a service on account
6. Collecting cash from a customer as payment on his account