Please complete the following exercises.

Exercise $2-5$: Analyzing Transactions

William Curtis is a personal finance and own Much Money consulting. This is his first month of operations and William has hired you to do his accounting. The following transactions are for the month of October.

a$.$ On October $2,$ William Curtis invested $$32,600$ cash into his business.

b$.$ On October $4,$ purchased $$925$ of office supplies for cash.

c$.$ On October $6,$ purchase $$13,600$ of office equipment on credit.

d$.$ On October $10,$ received $$3,000$ cash as revenue for being a guest on the TV show City Talk.

e$.$ On October $12,$ paid for the office equipment purchased in transactions $($C$).$

f$.$ On October $16,$ billed a customer $$5,400$ for delivering a corporate workshop on smart investing.

g$.$ On October $18,$ paid Octobers rent for the downtown office with $$3,500$ cash.

h$.$ On October $26,$ collected cash for all of the account receivable created in transaction $($f$).$

i$.$ On October $31,$ withdrew $$5,000$ cash from the business for a trip to Hawaii.

Required: For each transaction, $(1)$ Complete the analysis, $(2)$ determine the journal entry analysis and $(3)$ record the journal entry. Use the format given below. Transaction a$.$ has been completed for you as an example:

a$.$

Analysis

Assets increase. Equity increases.

Journal entry analysis

Debit the cash account for $$32,600.$

Credit the William Curtis, Capital account for $$32,600.$

Journal entry

Date

Account titles and Explanation

Debit

Credit

Oct. $2$

Cash

$32,600$

William Curtis, Capital..

$32,600$

Investment by Owner.

Exercise $2-6$: Posting transactions to the general ledger

Use the information given and the analysis completed in Exercise $2-5.$

Required:

Set up the following general ledger accounts using T$-$accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Account Payable; William Curtis, Capital; William Curtis; Withdrawals; Revenue; and Rent Expense.

Post the journal entries from Exercise $2-5$ into the T$-$accounts. Include the letter of the transaction next to your posting.

Determine the balance of each account.

Exercise $2-7$: Analyzing and journalizing revenue transactions

Examine the following transactions and identify those that created revenues for TI Servicing, a sole proprietorship owned by Todd Iver. Prepare general journal entries to record those transactions and explain why the other transactions did not create revenues.

Invested $$76,500$ cash in the business.

Provided $$2,700$ of services on credit.

Received $$3,150$ cash for services provided to a client.

Received $$18,300$ from a client in payment for service to be provide next year.

Received $$9,000$ from a client in partial payment of an account receivable.

Borrowed $300,000$ from the bank by singing a promissory note.

Exercise $2-8$: Analyzing and journalizing expense transactions

Myra Sherma owns and operates a yoga studio, Green Yoga. Examine the following transactions and identified those that created expenses for Green Yoga. Prepare general entries to record those transactions and explain why the other transactions did not create expenses.

Paid $$14,100$ cash for office supplies purchased $30$ days previously.

Paid the $$1,125$ salary of the receptionist.

Paid $$45,000$ cash for Yoga studio equipment.

Paid utility bill with $$930$ cash.

Withdrew $$5,000$ from the cash account for personal use.

Exercise $2-9$: Journalizing, Posting, Preparing a trial balance, and Financial Statements

CHECK FIGURES: $4.$ Total debits $=$ $$19,0005.$ Total assets $=$ $ $15,250$

Manny Gill is an entrepreneur who started West Secure, a business that provides a number of security guard services. West Secure incurred the following transactions during July $2017,$ its first month of operations:

July $1$ The owner, Manny Gill, invested $$5,000$ cash.

$10$ Purchased $$2,500$ worth of security equipment on credit.

$12$ performed security services for a sold out concert and received $$10,000$ cash from the client

$14$ Paid for expanses; $$3,500.$

$15$ Completed security services for a graduation event and sent the client a bill for $$1,500.$

$31$ The owner withdrew $$250$ cash for personal use.

Required:

Set up the following general ledger accounts using either the T$-$account format or the balance column format: Cash $101$; Accounts Receivable, $106$; Equipment, $150$; Accounts payable, $201$; Manny Gil, Capital, $301$; Manny Gill, withdrawal, $302$; Revenue, $401$; Expenses, $501.$

Record the journal entries for the month of July.

Post the July Journal entries into your general ledger accounts. Include the date next to each number posted. Determine the balances.

Prepare a trail balance using the balances in your general ledger accounts.

Wild West Secure

Trial Balance

July $31,2017$

Acct. No$.$ Account Title Debit Credit

Prepare an income statement, statement of changes in equity, and balance sheet based on your trial balance.

Wild West Secure

Income Statement

For Month Ended July $31,2017$

Revenue $...$

Expenses $.$

Profit $.$

Wild West Secure

Statement of Changes in Equity

For Month Ended July $31,2017$

Manny Gill, Capital, July $1.$

Add: Investments by owner $...$

Profit $.$

Total...

Less: Withdrawal by owner

Manny Gill, capital, July $31$

Wild West Secure

Balance Sheet

July $31,2017$

Assets Liabilities

Cash Accounts Payable

Accounts Receivable $...$

Equipment $...$ Equity

Manny Gill, Capital

Total Liabilities and equity $.$

Manny Gill, capital, July $31...$

Total Assets

Analysis Component: Assets are financed by debt and equity transactions, a concept reinforced by the accounting equation: A $=$ L $+$ E$.$ Since accounts receivable are an asset, are they financed by debt and or equ