Name: Nguyen Ngoc Mai

CHAPTER 3 EXERCISES

Ex 1: BE3-2

STOCKHOLDERS'
ASSETS
LIABILITIES EQUITY

Acc Accounts Bonds Retained Earnings

Cash Supplies Stock
receivable payable payable Rev. - Epx. - Div.
1 + $60,000 +$60,000 Issued bonds
2 -$9,000 -$9,000 Dividends
3 +$13,000 +$13,000 Service Revenue
Purchase on
4 +$3,100 +$3,100
account

Ex 1: BE3-3

ASSETS LIABILITIES STOCKHOLDERS' EQUITY

Accounts Bonds Common Retained Earnings

Cash Inventory Equipment
payable payable stock Rev. - Epx. - Div.
Equipment
1 -$286,176 +$286,176
Purchase
2 +$137,590 +$137,590 Issued Stocks
Purchase on
3 +$68,480 +$68,480
account

Ex 3: E3-1
1. Increase in assets (cash) and increase in stockholders’ equity (common stock)
2. Decrease in assets (cash) and decrease in stockholders’ equity (expenses)
3. Increase in assets (cash) and increase in stockholders’ equity (revenues)
4. Increase in assets (accounts receivable) and increase in stockholders’ equity (revenue)
5. Decrease in assets (cash) and decrease in stockholders’ equity (dividends)
6. Decrease in stockholders’ equity (expenses) and increase in liabilities (accounts
payable)
7. Increase in assets (cash) and decrease in assets (accounts receivable)
8. Decrease in assets (cash) and increase in assets (equipment)
9. Increase in assets (equipment) and increase in liabilities (accounts payable)
Ex 4: E3-7
a)
ACCOUNT DEBITED ACCOUNT CREDITED
Trans (b) (d) (b)
(a) Basic (a) Basic (d) Normal
-actio Specific (c) Effect Normal Specific (c) Effect
Type Type Balance
n Account Balance Account
Stockholders' Common
1 Asset Cash Increase Debit Increase Credit
Equity stock
2 Asset Equipment Increase Debit Asset Cash Decrease Debit
Accounts
3 Asset Supplies Increase Debit Liabilities Increase Credit
Payable
Accounts Stockholders'
4 Asset Increase Debit Revenue Increase Credit
Receivable Equity
Stockholders
5 Expenses Decrease Debit Asset Cash Decrease Debit
' Equity
Accounts
6 Asset Cash Increase Debit Asset Decrease Debit
Receivable
Accounts
7 Liabilities Increase Credit Asset Cash Decrease Debit
Payable
Stockholders
8 Dividends Decrease Debit Asset Cash Decrease Debit
' Equity

b)
GENERAL JOURNAL
Trans-
Account Titles Debit Credit
action
1 Cash 15,000
Common Stock 15,000
2 Equipment 10,000
Cash 10,000
3 Supplies 300
Accounts Payable 300
4 Accounts Receivable 3,700
Revenue 3,700
5 Expenses 200
Cash 200
6 Cash 1,100
 Accounts Receivable 1,100
7 Accounts Payable 300
Cash 300
8 Dividends 400
Cash 400

Ex 5: P3-4A
GENERAL JOURNAL
Date Account Titles Debit Credit
Mar 1 Cash 50,000
Common Stock 50,000
(Issued stocks for cash)
3 Land 23,000
Buildings 9,000
Equipment 6,000
Cash 38,000
(Purchased PPE for cash)
5 Advertising Expense 1,200
Cash 1,200
(Paid for Advertising)
6 Prepaid Insurance 2,400
Cash 2,400
(Paid 1- year insurance policy)
10 Equipment 5,500
Accounts Payable 5,500
(Purchased equipment payable in 30 days)
18 Cash 1,600
Service Revenue 1,600
(Received Cash for Golf Fees)
19 Cash 2,500
Unearned Service Revenue 2,500
(Sold 100 coupon books)
25 Dividends 500
Cash 500
 (Paid cash dividends)
30 Salaries and Wages Expense 800
Cash 800
(Paid salaries)
30 Accounts Payable 5,500
Cash 5,500
(Paid for equipment purchase on Mar 10)
31 Cash 900
Service Revenue 900
(Received Cash for Golf Service Performed)