E1-11
(a) Total Assets = Total liabilities +Shareholders’ equity
97,000=85,000+ (a)
(a)=97,000-85,000
=12,000
(b) Profit= Total revenue-total expenses
=215,000-175,000
=40,000
(c) Total Assets= Total liabilities + Shareholders’ Equity
122,000=(c)+75,000
(c)=47,000
(d) Profit=Total Revenue-Total expenses
=100,000-55,000
=45,000
Dividends= Profit-Additional Investment
=45,000-25,000
(d)=20,000
E2-9
(a) Posting transactions to T-accounts
Cash A/c
Date
Account Titles
Amount
Date
Account Titles
Amount
Aug 1
Common Stock
6,000
Aug 12
Equipment
800
10
Service Revenue
2,700
31
Accounts receivable
880
Common stock A/c
Date
Account Titles
Amount
Date
Account Titles
Amount
Aug 1
Cash
6,000
Service Revenue A/c
Date
Account Titles
Amount
Date
Account Titles
Amount
Aug 10
Cash
2,700
25
Accounts receivable
1,600
Equipment A/c
Date
Account Titles
Amount
Date
Account Titles
Amount
Aug 12
Cash
800
Notes Payable
4,200
Notes Payable A/c
Date
Account Titles
Amount
Date
Account Titles
Amount
Aug 12
Equipment
4,200
Accounts Receivable A/c
Date
Account Titles
Amount
Date
Account Titles
Amount
Aug 25
Service Revenue
1,600
Aug 31
Cash
880
E2-11 (a) Journal entries
Date
Account Titles and explanation
Ref
Debit
Credit
Oct 1
Cash
Common stock
(Investment of cash for stock)
5,000
5,000
10
Cash
Service Revenue
(Received cash for services)
730
730
10
Cash
Notes Payable
(Borrowed cash)
3,000
3,000
20
Accounts receivable
Service Revenue
(Billed Clients for services performed)
910
910
20
Cash
Accounts Receivable
(Received cash on account)
500
500
(b)Trial Balance
Debit
Credit
Service...