E1.

6 Spring Cruises
No. Transaction Asset
Received cash investment from shareholders to
1 start business in exchange for ordinary shares. +Cash
2 Paid monthly rent -Cash
3 Purchase equipment on account +Equipment
4 Billed customers for services performed. +Accounts receivable
5 Paid dividends. -Cash
6 Received cash from customers billed in (4). +Cash
7 Incurred advertising expense on account.
-Cash
8 Purchased additional equipment for cash. +Equipment
Received cash from customers when service was
9 performed. +Cash
Liabilities Equity

+ Share capital
+Rent expense
+Accounts payable
+Service revenue
+Dividend
-Accounts receiveble
+Accounts payable +Advertising expense

+Service revenue
E1.7 Collins Computer Timeshare
Assets = Liabilities + Equity
Trans. Accounts Accounts Share
Cash + Supplies + Equipment=
receivable + payable + Capital +
1 +20,000 +20,000
2 -4,000
3 +17,000 -17,000
4 +4,000
5 -11,000
6 +29,000 +29,000
7 -20,000 -20,000
8 +1,200

1. Purchased computers for R$20,000 from Digital Equipment on account.

2. Paid R$4,000 cash for May rent on storage space.
3. Received R$17,000 cash from customers for contracts billed in April.
4. Performed computer services for Viking Construction for R$4,000 cash.
5. Paid Tri-State Power R$11,000 cash for energy usage in May.
6. Shareholders invested an additional R$29,000 in the business in exchange for ordinary shares.
7. Paid Digital Equipment for the computers purchased in (1) above.
8. Incurred advertising expense for May of R$1,200 on account.

P1.1 Miaoli’s Travel Agency

Assets = Liabilities + Equity
Trans. Accounts Accounts Share
Cash + Supplies + Equipment=
receivable + payable + Capital +
1 +15,000 +15,000
2 -600
3 -3,000 +3,000
4 +700
5 -900 +900
6 +3,000 +7,000
7 -600
8 -700 -700
9 -2,500
10 +4,000 -4,000

1. Shareholders invested NT$15,000 cash in the business in exchange for ordinary shares.
2. Paid NT$600 cash for April office rent.
3. Purchased equipment for NT$3,000 cash.
4. Incurred NT$700 of advertising costs for online ads, on account.
5. Paid NT$900 cash for office supplies.
6. Performed services worth NT$10,000: NT$3,000 cash is received from customers, and the balance
NT$7,000 is billed to customers on account.
7. Declared and paid NT$600 dividend.
8. Paid NT$500 of the online advertising amount due in transaction (4).
9. Paid employees’ salaries NT$2,500.
10. Received NT$4,000 in cash from customers who have previously been billed in transaction (6).
 Equity
Retained earnings Notes
Rev - Exp - Div

-(+4,000) Rent expense

+4,000 Service revenue

-(+11,000) Ultility expense
Investment

-(+1,200) Advertising expense

ge for ordinary shares.

Equity
Retained earnings Notes
Rev - Exp - Div
Investment
-(+600) Rent expense

-(+700) Advertising expense

+10,000 Service revenue

-(+600) Dividend

-(+2,500) Salaries expense

rdinary shares.

ustomers, and the balance of

billed in transaction (6).

P1.2 (a) Ai Fang Co.
Assets = Liabilities + Equ
Accounts
Trans. Supplies Notes Accounts Share
Cash + receivable Equipment=
+ payable + payable + Capital +
+
1 +20,000 +20,000
2 -1,000 +2,000 +1,000
3 -600
4 +500 +500
5 +4,000 +3,500
6 -500 -500
7 -700
8 +270
9 -2,800
10 +2,000 +2,000

1. Shareholders invested ¥20,000 cash in the business in exchange for ordinary shares.
2. Purchased equipment for ¥2,000, paying ¥1,000 in cash and the balance on account.
3. Paid ¥600 cash for August office rent.
4. Purchased ¥500 of supplies on account.
5. Recognized revenue of ¥7,500, of which ¥4,000 is collected in cash with the balance to be collected
6. Paid for the supplies purchased in transaction (4).
7. Declared and paid ¥700 dividend.
8. Incurred utility expenses for the month on account ¥270.
9. Paid salaries of ¥2,800 for August.
10. Received ¥2,000 from Standard Bank—money borrowed on a note payable.

P1.4 (a) Stiner Deliveries Ltd.,

Assets = Liabilities + Equ
Accounts
Trans. Supplies Notes Accounts Share
Cash + receivable Equipment=
+ payable + payable + Capital +
+
1 +10,000 +10,000
2 -2,000 +14,000 +12,000
3 -500
5 +4,800
9 -300
12 +150 +150
15 +1,250 -1,250
17 +100
20 +1,500
23 -500 -500
26 -250
29 -100 -100
30 -1,000

June 1 Shareholders invested £10,000 cash in the business in exchange for ordinary shares.
2 Purchased a used van for deliveries for £14,000. Matt paid £2,000 cash and signed a note
payable for the remaining balance.
3 Paid £500 for office rent for the month.
5 Performed services worth £4,800 on account.
9 Declared and paid £300 in cash dividends.
12 Purchased supplies for £150 on account.
15 Received a cash payment of £1,250 for services performed on June 5.
17 Purchased gasoline for £100 on account.
20 Received a cash payment of £1,500 for additional services performed.
23 Made a cash payment of £500 on the note payable.
26 Paid £250 for utilities.
29 Paid for the gasoline purchased on account on June 17.
30 Paid £1,000 for employee salaries.
 Equity
Retained earnings Notes
Rev - Exp - Div
Investment

-(+600) Rent expense

+7,500 Service revenue

-(+700) Dividend
-(+270) Ultility expense
-(+2,800) Salary expense

alance to be collected later.

Equity
Retained earnings Notes
Rev - Exp - Div
Investment

-(+500) Rent expense

+4,800 Service revenue
-(+300) Dividend

-(+100) Ultility expense

+1,500 Service revenue

-(+250) Ultility expense

-(+1,000) Salary expense

ary shares.
ned a note