the I PUT LO Tupu TCUN U compute the balance for Cash. E2-26B. (Learning Objective 1: Analyzing transactions) The following selected events were experienced by either Simple Solutions, Inc., a corporation, or Bob Gallagher, the major shareholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected. a. Received 25,000 cash and issued shares to a shareholder. b. Purchased equipment for 62,000 cash. c. Paid 11,000 cash on accounts payable. d. Gallagher used personal funds to purchase a flat screen TV for his home. e. Purchased land for a building site and signed a 95,000 promissory note to the bank. f. Received 18,000 cash from cu mers for services performed. g. Sold land and received a note rendable of 45,000 (the land was carried on the company's books at 45,000). h. Earned 32,000 in revenue for services performed. The customer promises to pay Simple Solutions in one month. i. Purchased supplies on account for 4,500. j. The business paid Gallagher a cash dividend of 5,000. R 1. Record the transaction give an explanation for each transaction. E2-29B. (Learning Objectives 2, 3: Understanding how accounting works; journalizing transactions) Green Tree Cellular, Inc., completed the following transactions during April 20X6. its first month of operations: LO 2 3 Apr 1 2 4 6 9 17 23 30 Received 20,100 and issued ordinary shares. Purchased 700 of office supplies on account. Paid 15,200 cash for land to use as a building site. Performed service for customers and received cash of 2,500 Paid 150 on accounts payable. Performed service for UPS on account totaling 1,100. Collected 850 from UPS on account. Paid the following expenses: salary, 1,700; rent, 1,300. Requirement 1. Record the transactions in the journal of Green Tree Cellular, Inc. Key transactions by date and include an explanation for each entry. E2-30B. (Learning Objectives 3, 4: Posting to the ledger; preparing and using a trial balance) Refer to Exercise 2-29B. LO 3 Kyle ly). S: Recording Business Transact Requirements 1. Post the entries to the ledger, using T-accounts. Key transactions by date. Date the ending balance of each account April 30. 2. Prepare the trial balance of Green Tree Cellular, Inc., at April 30, 20X6. 3. From the trial balance, determine total assets, total liabilities, and total shareholders' equity on April 302 E2-31B. (Learning Objectives 2, 3: Understanding how accounting works, journalizing transactions) The first seven transactions of Portman Advertising, Inc., have been posted to the company's accounts as follows: Supplies Equipment (1) 9,000 (3) 6,500 750 (5) 6,300 (6) 7,000 (5) 90 (7) LO 2 Cash Land 90 (2) (6) 7,000 (3) 28,5001 70 Share Capital 70|(4) 750 Accounts Payable Note Payable 70 (2) 6,300 9,000 (3) 22,000 Requirement 1. Prepare the journal entries that served as the sources for the seven transactions. Include an explanation for each entry. As Portman moves into the next period, how much cash does the business have? How much does Portman owe in total liabilities? expl cash does the business have? How much does Portman owe in total liabilities? E2-32B. (Learning Objective 5: Preparing and using a trial balance) The accounts of Grand Pool Service, Inc., follow with their normal balances at June 30, 20X6. The accounts are listed in no particular order. Account Share Capital... Accounts payable Service revenue..... Land... Note payable. Cash Balance 7,000 5,700 23,100 25,100 7,200 9,200 Account Dividends.. Utilities expense Accounts receivable, Delivery expense .......... Retained earnings.... Salary expense...... Balance 8,100 2,000 15,900 500 25,300 750 Requirements 1. Prepare the company's trial balance at June 30, 20X6, listing accounts in proper sequence, as il- lustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on. 2. Prepare the financial statement for the month ended June 30, 20X6, that will tell the company the results of operations for the month, E2-33B. (Learning Objective 5: Correcting errors in a trial balance) The trial balance of Farris, Inc., at June 30, 20X6, does notance. 4,000 12,800 17,000 500 50,100 Cash...... Accounts receivable, Inventory........ Supplies. Land.. Accounts payable Share capital..... Service revenue.... Salary expense.... Rent expense..... Utilities expense Total........ 14,200 45,300 30,300 2,100 800 500 87,800 89,800 a. Recorded a 300 cash revenue transaction by debiting Accounts Receivable. The c. Did not record utilities expense or the related account payable in the amount of 2 1. Prepare the correct trial balance at June 30, 20X6, complete with a heading. Journal er 2 The accounting records hold the following errors: entry was correct. Posted a 1,000 credit to Accounts Payable as 100. d. Understated Share Capital by 200. e. Omitted Insurance Expense of 63.100 from the trial balance. Requirement Red 1. 2 3 are not required. 0 5 E2-34B. (Learning Objective 5: Recording transactions without a journal) Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture Accounts Payable, Share Capital, Dividends, Service Revenue, Salary Expense, and Rene Expense. Record the following transactions directly in the T-accounts without using a journal. Use the letters to identify the transactions. a. Linda Conway opened a law firm by investing 12,000 cash and office furniture valued at 8,900. Organized as a corporation, the business issued ordinary shares to Conway. b. Paid monthly rent of 1,500. c. Purchased office supplies on account, 600. d. Paid employee salaries of 2,100. e. Paid 400 of the accounts payable created in Transaction c. f. Performed legal service on account, 69,100. g. Declared and paid dividends of 2,000. E2-35B. (Learning Objective 4: Preparing and using a trial balance) Refer to Exercise 2-34B. Requirements 1. Prepare the trial balance of Linda Conway, Attorney, at January 31, 20X6. Use the T-accounts that have been prepared for the business. 2. How well did the business perform during its first month? Compute net income (or net loss) for the month