E1.

6
Selected transactions for Green Valley Lawn Care Company are listed below.
1 Made cash investment to start business.
2 Paid monthly rent.
3 Purchased equipment on account.
4 Billed customers for services performed.
5 Withdrew cash for owner’s personal use.
6 Received cash from customers billed in (4).
7 Incurred advertising expense on account.
8 Purchased additional equipment for cash.
9 Received cash from customers when service was performed.
E1-7
Falske Computer Timeshare Company entered into the following transactions during May 2017
1 Purchased computers for $20,000 from Digital Equipment on account.
2 Paid $4,000 cash for May rent on storage space.
3 Received $17,000 cash from customers for contracts billed in April.
4 Performed computer services for Viking Construction Company for $4,000 cash.
5 Paid Tri-State Power Co. $11,000 cash for energy usage in May.
6 Falske invested an additional $29,000 in the business.
7 Paid Digital Equipment for the computers purchased in (1) above.
8 Incurred advertising expense for May of $1,200 on account.
P1-4A
Trixie Maye started her own consulting fi rm, Matrix Consulting, on May 1, 2017.
The following transactions occurred during the month of May.
May 1 Trixie invested $7,000 cash in the business.
2 Paid $900 for offi ce rent for the month.
3 Purchased $600 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $5,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on
May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account.
30 Paid $275 for utilities.

Assets
Date Cash
1 +7000
 2 -900
3
5 -125
9 +4000
12 -1000
15
17 -2500
20 -600
23 +4000
26 +5000
29
30 -275
+14600
+20800
Income Statement for the month of May
Revenue
Service Revenue

Total Revenue
Expenses
ice rent expense
dvertise expense
Salaries expense
Utilities expense
Total Expenses
Net income
Balance sheet
Assets
Cash
Accounts Receivable
Supplies
Equipment
Total assets
Liabilities and Owner'equity
Liabilities
Note Payable
Accounts Payable
Owner's equity
Owner's Capital
Owner's Drawings
Revenue
Expense
Total liabilities and owner's equity
P2-1A
Date Account Titles and Explanation
1 Cash Dr
Owner's Capital Cr
3 Cash Dr
Land Dr
Shed Dr
Equipment Cr
5 Advertising expense
Cash
6 Insuarance expense
Cash Dr
10 Equipment
Cash
18 Cash
Golf fee
19 Cash
Unearned service
25 Cash
Owner's drawings
30 Cash Cr
Salary expense
Cash
equipment
Cash Dr
Golf fee
P2-2A (WORD)
ny are listed below.
Increase in Assets increase in Liabilities
Decrease in Assets and decrease in onwner's equity
Increase in Assets and increase in Liabilities
Increase in Assets
Decrease in Assets and decrease in owner'equity
Incease in Assets and decrease in Assets
Increase in Liabilities and Increase in Owner's equity
Decrease in Assets and Increase in Assets
Increase in Asset and decrease in Assets

ransactions during May 2017

(c) An increase in assets and an increase in liabilities.
(d) A decrease in assets and a decrease in owner’s equity.
(a) An increase in assets and a decrease in assets.
(b) An increase in assets and an increase in owner’s equity.
(d) A decrease in assets and a decrease in owner’s equity.
(b) An increase in assets and an increase in owner’s equity.
(e) A decrease in assets and a decrease in liabilities.
(f) An increase in liabilities and a decrease in owner’s equity.

Assets
Accounts Receivable Supplies Equipment
 +600

+5400

-4000

+4200

+1400 +600 +4200

+20800

+4000
+5400
+9400

-900
-125
-2500
-275
+3800
+5600

+14600
+1400
+600
+4200
+20800

+5000
+4200

+7000
+1000
+9400
+3800
 +20800

Ref Debit Credit

Dr 20000
Cr 20000
Dr 15000
Dr 12000
Dr 2000
Cr 1000
900
900
600
Dr 600
1050
1050
1100
1100
1500
1500
800
800
Cr 250
250
1050
1050
Dr 2700
2700
 Liabilities Owner'equity
Note Payable Accounts Payable Owner's Capital Owner's drawRevenue
+7000
 +600

+4000
-1000
+5400

-600

+5000
+4200

+5000 +4200 +7000 -1000 +9400

+20800
Expenses
 -900

-125

-2500

-275
-3800