Score: 8 130 ASSETS LIABILITIES OWNER'S EQUITY Note: the balances from the first Mont exercise INCREASE: DEBIT INCREASE: CREDIT INCREASE: CREDIT have been entered and are in boldface in the T-accts. DECREASE: CREDIT DECREASE: DEBIT DECREASE: DEBIT DR CR 0 101 CASH 41,600 101 CASH 201 ACCTS PAYABLE 302 MONT DRAWING 301 MONT CAPITAL 0 104 ACCTS RECEIVABLE 5,000 41,600 13,000 40,050 0 106 SUPPLIES 1,700 1 110 EQUIPMENT 15,000 0 40,050 0 112 ACC. DEPR. EQUIP. 250 0 13,000 1 201 ACCTS PAYABLE 13,000 1 202 NOTES PAYABLE 10,000 41,600 202 NOTES PAYABLE 1 301 MONT CAPITAL 40,050 10,000 0 302 MONT DRAWING 104 ACCTS RECEIVABLE 0 401 SERVICE REVENUE 5,000 0 10,000 OPERATIONS 0 501 RENT EXPENSE 501 RENT EXPENSE401 SERVICE REVENUE 0 503 ADVERT. EXPENSE 5,000 0 0 504 UTILITIES EXPENSE 0 509 DEPR. EXPENSE 106 SUPPLIES 0 510 SUPPLIES EXPENSE 1,700 0 TOTALS 63,300 63.300 503 ADVERT. EXPENSE In Balance? DR=CR? YES 1,700 0 110 EQUIPMENT 1 15,000 504 UTILITIES EXPENSE 15,000 0 112 ACC. DEPR. EQUIP. 250 509 DEPR. EXPENSE 250 0 510 SUPPLIES EXPENSETRANSACTIONS FOR MONT, PERIOD 2 Note that the net income for period 1 was added to Mont's Capital account. If you make a prot, then it is moved to your Capital at the end of the period, an: all revenues and expenses, as well as the Drawing account are zeroed out. The balances for assets and liabilities are carried forward. I have boldfaced the beginning balance of each account. 1 Mont paid the rent for period 2 in cash, $1,500. 2 Mont purchased advertising on account, in the amount of $2,000. 3 Utilities Expense was paid in cash, $600. 4 Mont purchased supplies on account, $4,000. 5 Mont provided services to customers on account, $12,000. 6 Mont paid cash on account in the amount of $6,000. 7 Cash was received 'om customers on account, $9,000. 8 Mont provided services to customers and received cash of $5,000. 9 Depreciation was recorded on the equipment, $250. (Debit Depreciation Expense, credit Accumulated Depreciation.) 10 Supplies used during the period amounted to $3,700. (Debit Supplies Expense, credit Supplies.) 11 Mont withdrew cash from the business, $1,000, for personal use