1. Current assets increase from $18,670 to $18,875, which is a 1.10% increase.

This is because of the greatest increa

2. 22.2% and 22.3% respectively for 2018 and 2019. Hence 2019 is higher. This means that the costs of sales and oth
se of the greatest increase in consumer credit from 3,722 to 4,007.
he costs of sales and other types of costs have decreased.
1. increase assets: cash account; increase liability: loans payable increases
2. decrease assets: cash account; decrease equity: rental expenses increase
3. increase assets: cash account; decrease assets: equipment
4. increase assets: cash account; increase equity: income increases
5. increase assets: cash account; increase equity: interest income increases
6. decrease assets: cash account; decrease liability: accounts payable; decrease equity: interest expenses increase
1. cash (A) 7. Salary Expenses (E) 13. Notes Payable (L)
2. Service revenue (R) 8. Retained Earnings (OE) 14. Equipment (A)
3. Acc receivable (A) 9. Salaries Payable (L) 15. Office Supplies (A)
4. Insurance Expense (E) 10. Acc Payable (L) 16. Utilities Expenses ( E)
5. Capital Stock (OE) 11. Interest Revenue (R) 17. Interest Pyable (L)
6. Mortgage Payable (L) 12. Interest Receivable (A) 18. Rent Expense ( E)
1: Prepare Journal Entries Dr Cr
(a) Cash 30,000
Supplies 2,500
Land 20,000
Building 165,000
Office Equipment 13,500
Notes Payable 6,000
Capital Stock 225,000

(b) Cash 20,000

Accounts receivable 32,000
Service Revenue 52,000

(c) Notes Payable 6,000

Interest Expenses 500
Cash 6,500

(d) Supplies 1,400

Cash 600
Notes Payable 800

(e) Office Equipment 12,000

Cash 6,000
Capital Stock 6,000

(f) Machinery 25,000

Cash 5,000
Notes Payable 20,000

3. Trail Balance

Shaw Company
Trail Balance as in 2022
Debit Credit
Cash 31,900
Supplies 3,900
Land 20,000
Building 165,000
Office Equipment 25,500
Accounts Receivable 32,000
Transportation Equipment 25,000
Interest Expenses 500
Notes Payable 20,800
Capital Stock 231,000
Service Revenue 52,000
303,800 303,800
2. T accoount
Cash Office Equipment
Dr Cr Dr Cr
30,000 13,500
20,000 12,000
6,500 Bal
600 25,500
6,000
5,000 Accounts Recceivable
Bal Dr Cr
31,900 32,000
Bal
Supplies 32,000
Dr Cr
2,500 Notes Payable
1,400 Dr Cr
Bal 6,000
3,900 6,000
800
Land 20,000
Dr Cr Bal
20,000 20,800
Bal
20,000 Transportation Equipment
Dr Cr
Building 25,000
Dr Cr Bal
165,000 25,000
Bal
165,000
 Capital Stock
Dr Cr
225,000
6,000
Bal
231,000

Service Revenue
Dr Cr
52,000
Bal
52,000

Interest Expenses
Dr Cr
500
Bal
500