1. The following selected transactions were completed during February of the current year:

1. Billed customers for fees earned, $41,730.
2. Purchased supplies on account, $1,800.
3. Received cash from customers on account, $39,150
4. Paid Creditors on account, $1,100.
5. Owner withdrew $12,000 for personal use
6. Paid $500 for this month Rent.
7. Paid $100 for this month Utility bill.
8. Paid Salary to employees $3,000
9. Purchase Equipment for Cash $5,000
10. Received Cash $2,500 for services performed.
11. Owner invested $75,000 in business

1. Prepare Journal accounts.
2. Prepare T-Account.
3. Prepare a trial balance

2. Indicate how each account should be classified in Pauls Balance sheet and which account should be excluded from his balance sheet using the letters below;

Asset, Liability, Stockholders Equity, Exclude from, & Balance Sheet?

1. Equipment used in the business _______
2. Amounts owed to suppliers _______
3. Mortgage on Pauls home ______
4. Sound equipment used in the reception area of Pauls office ____
5. Amounts owed by client _____
6. Amounts due to suppliers for the purchase of office equipment ______
7. Pauls original investment in the business _____
8. Amounts owed employees _______
1. Office buildings and land _________
10. Cleaning supplies used in Pauls home ________
11. Golf clubs (kept in Pauls office) _______

3. Match the following financial statement categories with the accounts listed.

Asset, Liability, Stockholders Equity, Revenue, & Expense.

1. Cost of Goods Sold _____
2. Accounts Receivable ___________
3. Land __________
4. Equipment ______
5. Supplies ________
6. Taxes Payable ________
7. Delivery Truck ______
8. Salary expense ________

4. The amount of assets created through performance of business operations is referred to as ______?
5. Which of the following represent categories which appear on the income statement?

1. Expenses, revenues, net income
2. Assets, liabilities, revenues, expenses
3. Revenues, expenses, liabilities, retained earnings
4. Retained earnings, net income, assets, liabilities
5. Liabilities, revenues, income taxes