1. From the following trial balance, identify which statement each title will appear on: a. Income statement (IS) b. Statement of owner’s equity (OE) c. Balance sheet (BS) Bradford Co. Trial Balance Nov. 30, 201X Debits Credits A. Cash 600 B. Computer 100 C. Computer Equipment 1,000 D. Accounts Payable 800 E. L. Bradford, Capital 200 F. L. Bradford, Withdrawals 500 G. Legal Fees Earned 1,500 H. Consulting Fees Earned 300 I. Wage Expense 200 J. Supplies Expense 250 K. Internet Advertising Expense 150 Totals 2,800 2,800 2. SANCHEZ COMPUTER CENTER The Sanchez Computer Center created its chart of accounts as follows: Chart of Accounts as of July 1, 201X Assets Revenue 1000 Cash 4000 Service Revenue 1020 Accounts Receivable Expenses 1030 Supplies 5010 Advertising Expense 1080 Computer Shop Equipment 5020 Rent Expense 1090 Office Equipment 5030 Utilities Expense Liabilities 5040 Phone Expense 2000 Accounts Payable 5050 Supplies Expense Owner’s Equity 5060 Insurance Expense 3000 Freedman, Capital 5070 Postage Expense 3010 Freedman, Withdrawals You will use this chart of accounts to complete the continuing problem. The following problem continues. The balances as of July 31 have been brought forward in the working papers that accompany this text. Tasks a. Set up T accounts in a ledger. b. Record transactions k through s in the appropriate T accounts. c. Foot and take the balances of the T accounts where appropriate. d. Prepare a trial balance at the end of August. e. Prepare from the trial balance an income statement, statement of owner’s equity, and a balance sheet for the two months ending with August 31, 201X. o Received the phone bill for the month of July, $155. o Paid $150 (check #8099) for insurance for the month. o Paid $200 (check #8100) of the amount due from transaction d in Chapter 1. o Paid advertising expense for the month, $1,400 (check #8101). o Billed a client (Jeannine Sparks) for services rendered, $850. o Collected $900 for services rendered. o Paid the electric bill in full for the.

1. 1. From the following trial balance, identify which statement
each title will appear on:
a. Income statement (IS)
b. Statement of owner’s equity (OE)
c. Balance sheet (BS)
Bradford Co.
Trial Balance
Nov. 30, 201X
Debits Credits
A. Cash 600
B. Computer 100
C. Computer Equipment 1,000
D. Accounts Payable 800
E. L. Bradford, Capital 200
F. L. Bradford, Withdrawals 500
G. Legal Fees Earned 1,500

2. H. Consulting Fees Earned 300
I. Wage Expense 200
J. Supplies Expense 250
K. Internet Advertising Expense 150
Totals 2,800 2,800
2. SANCHEZ COMPUTER CENTER
The Sanchez Computer Center created its chart of accounts as
follows:
Chart of Accounts as of July 1, 201X
Assets Revenue
1000 Cash 4000 Service
Revenue
1020 Accounts Receivable Expenses
1030 Supplies 5010 Advertising
Expense
1080 Computer Shop Equipment 5020 Rent Expense
1090 Office Equipment 5030 Utilities
Expense
Liabilities 5040 Phone

3. Expense
2000 Accounts Payable 5050 Supplies
Expense
Owner’s Equity 5060 Insurance
Expense
3000 Freedman, Capital 5070 Postage
Expense
3010 Freedman, Withdrawals
You will use this chart of accounts to complete the continuing
problem.
The following problem continues. The balances as of July 31
have been brought forward in the working
papers that accompany this text.
Tasks
a. Set up T accounts in a ledger.
b. Record transactions k through s in the appropriate T
accounts.
c. Foot and take the balances of the T accounts where
appropriate.
d. Prepare a trial balance at the end of August.
e. Prepare from the trial balance an income statement,
statement of owner’s equity, and a balance

4. sheet for the two months ending with August 31, 201X.
o Received the phone bill for the month of July, $155.
o Paid $150 (check #8099) for insurance for the month.
o Paid $200 (check #8100) of the amount due from transaction d
in Chapter 1.
o Paid advertising expense for the month, $1,400 (check #8101).
o Billed a client (Jeannine Sparks) for services rendered, $850.
o Collected $900 for services rendered.
o Paid the electric bill in full for the month of July (check
#8102, transaction h, Chapter
1).
o Paid cash (check #8103) for $50 in stamps.
o Purchased $200 worth of supplies from Computer Connection
on credit.
3. The chart of accounts of Annis’ Delivery Service is as
follows: Cash, 111; Accounts Receivable, 112;
Office Equipment, 121; Delivery Trucks, 122; Accounts
Payable, 211; Avery Annis, Capital, 311; Avery
Annis, Withdrawals, 312; Delivery Fees Earned, 411;
Advertising Expense, 511; Gas Expense, 512;
Salaries Expense, 513; and Telephone Expense, 514. Annis’
Delivery Service completed the following
transactions during the month of August:
Transaction A: Avery invested $17,000 in the delivery service
from her personal savings account.
Transaction B: Bought delivery trucks on account, $11,000.

5. Transaction C: Bought office equipment for cash, $600.
Transaction D: Paid advertising expense, $350.
Transaction E: Collected cash for delivery services rendered,
$3,500.
Transaction F: Paid drivers’ salaries, $900.
Transaction G: Paid gas expense for trucks, $1,700.
Transaction H: Performed delivery services for a customer on
account, $1,600.
Transaction I: Telephone expense due but unpaid, $600.
Transaction J: Received $400 as partial payment of transaction
H.
Transaction K: Avery withdrew cash for personal use, $250.
As Avery’s newly hired accountant, you must perform the
following:
a. The T accounts in the ledger have been set up for you. Record
transactions in the T accounts.
(Place the letter of the transaction next to the entry.)
b. Foot the T accounts where appropriate.
c. Prepare a trial balance at the end of August.
d. Prepare from the trial balance, in proper form, (a) an income
statement for the month of August,
(b) a statement of owner’s equity, and (c) a balance sheet as of
August 31, 201X.

6. 4. From the trial balance of Gail Lucas, Attorney-at-Law
(below) prepare
a. An income statement for the month of May
b. A statement of owner’s equity for the month ended May 31,
and
c. A balance sheet at May 31, 201X.
Gail Lucas, Attorney-At-Law
Trial Balance
May 31, 201X
Debits
Credits
A. Cash 6,000.00
B. Accounts Receivable 750.00
C. Office Equipment 1,250.00
D. Accounts Payable 6,200.00
E. Sales Payable
770.00
F. G. Lucas, Capital

7. 1,180.00
G. G. Lucas, Withdrawals 800.00
H. Revenue from Legal Fees 1,800.00
I. Utilities Expense 150.00
J. Rent Expense 500.00
K. Salaries Expense 500.00
Totals 9,950.00
9,950.00
a. Set up an expanded accounting equation spreadsheet using the
following accounts:
Assets Liabilities Owner’s Equity
Cash
Supplies
Computer Shop
Equipment
Office Equipment

8. Accounts Payable Freedman, Capital
Freedman, Withdrawal
Service Revenue
Expenses (notate type)
b. Analyze and record each transaction in the expanded
accounting equation.
c. Prepare the financial statements ending July 31 for Sanchez
Computer Center.
2. On July 1, 201X, Tony Freedman decided to begin his own
computer service business. He named
the business the Sanchez Computer Center. During the first
month Tony conducted the following
business transactions. Record them into the basic accounting
equation.
a. Invested $4,500 of his savings into the business.
b. Paid $1,200 (check #8095) for the computer from Multi
Systems, Inc.
c. Paid $600 (check #8096) for office equipment from Office
Furniture, Inc.

9. d. Set up a new account with Office Depot and purchased $250
in office supplies on credit.
e. Paid July rent, $400 (check #8097).
f. Repaired a system for a customer and collected $250.
g. Collected $200 for system upgrade labor charge from a
customer.
h. Electric bill due but unpaid, $85.
i. Collected $1,200 for services performed on Taylor Golf
computers.
j. Withdrew $100 (check #8098) to take his wife, Carol, out in
celebration of opening the new
business.
3. Mike Ackerman decided to open Mike’s Nail Spa. Mike
completed the following transactions. Record
them into the basic accounting equation.
a. Invested $24,000 cash from his personal bank account into

10. the business.
b. Bought store equipment for cash, $3,700.
c. Bought additional store equipment on account, $6,100.
d. Paid $900 cash to partially reduce what was owed from
transaction c.
4. From the following account balances, prepare in proper form
for September (a) an income
statement, (b) a statement of owner’s equity, and (c) a balance
sheet for Frechette Realty.
Cash $7,050 S.
Frechette, Withdrawals $800
Accounts Receivable 1,060
Professional Fees 4,000
Office Equipment 6,700 Salaries
Expense 400
Accounts Payable 2,000 Utilities

11. Expense 360
S. Frechette, Capital, September 1, 201X 10,770 Rent
Expense 400