Exercise 1

Exercise 1
XXXXX
XACC/290
August XX, 2014
XXXXXX

E3-4
Describe each transaction.
1. The company issued shares of stock to stockholders’ equity increased for the month.
2. The company purchased equipment for $1,000 cash and $4,000 on account.
3. The company purchased supplies for $750 cash.
4. The company receives $4,100 in cash revenue and $5,400 in accounts receivable.
5. The company paid $1,500 cash for accounts payable.
6. The company paid a $2,000 dividend.
7. The company paid $800 cash for rent.
8. The company received a payment for accounts receivable.
9. The company paid its employees’ salaries in the amount of $3,000.
10. The company paid their utility expense on account.
Determine how much the stockholders’ equity increased.
The stockholders’ equity increased by $3,600.
Compute the net income for the month.
The net income for the month is $25,600.

E3-9
Journalize
Date ____ Account Title ____ Debit Credit_______________
May 4 Supplies $700 Accounts Payable $700 7 Accounts Receivable $6,800 Service Revenue $6,800 8 Accounts Payable $850 Supplies $850 9 Cash $1,000 Equipment $1,000 17 Salary $530 Expense $530 29 Cash $1200 Prepaid Insurance $1200

3-5A
Journalize
Date ____ Account Title ____ Debit Credit______
April 2012
1 Cash $18,000 Common Stock $18,000
2 Cash $900 Expenses $900 3 Accounts Payable $1,300 Supplies $1,300
11 Cash $700 Unearned Service Revenue $700
20 Cash $2,800 Service Revenue $2,800
30 Salary $1,500 Expense $1,500
30 Cash