Account Name: Debit Credt

1. Cash $ 35,000.00
R. Wier, Capital $ 35,000.00
2. Office Supplies $ 400.00
Accounts Payable $ 400.00
3. Office Equipment $ 6,000.00
Cash $ 2,500.00
Notes Payable $ 3,500.00
4. Accounts Receivable $ 4,000.00
Real Estate Comission Revenue $ 4,000.00
5. Rent Expense $ 700.00
Cash $ 700.00
6. Accounts Payable $ 200.00
Cash $ 200.00
7. Advertising Expense $ 500.00
Accounts Payable $ 500.00
8. Office Salaries Expense $ 2,200.00
Accounts Payable $ 2,200.00
9. R. Wier, Drawings $ 1,200.00
Cash $ 1,200.00
10. Cash $ 3,000.00
Accounts Receivable $ 3,000.00
Date Account Title and Explanation Debit
30-Sep Rent Expense $ 33,333.33
Prepaid Rent
To record Rent Expense for mornth of Sept (200000*1/6)
30-Sep Unearned ticket Revenue (600000*4/20) $ 50,000.00
Ticket Revenue
To reord unearned ticket revenue for month of Sept
Credit

$ 33,333.00

$ 50,000.00
1. Debit
2. Debit
3. Debit
4. Credit
5. Credit
6. Debit
7. Credit
8. Credit
9. Debit
10. Credit
Case 1
Date Account name and explanation Debit Credit
Dec 31st Office Supplies Expense (3000+8500-5100) $ 6,400.00
Office Supplies $ 6,400.00
Recording office supplies used during the year

Case 2
Date Account name and explanation Debit Credit
1-Jul Depreciation Expense $ 2,400.00
Accumulated depreciation-Office equipment $ 2,400.00
Depreciation of Office Equipment

Case 3
Date Account name and explanation Debit Credit
31-Aug Rent receivable (600*3+1000*1) $ 2,800.00
Rent revenue $ 2,800.00
Recording rent revnue
Date Account name + revenue Debit
31-Dec Service Revenue $ 27,000.00
Income Summary
31-Dec Income Summary $ 11,800.00
Depreciation Expense
Advertising Expense
Rent Expense
Salary Expense
Insurance Expense
31-Dec Income Summary $ 15,200.00
Retained earnings

Closing balance in Captial Account = 22000+15200-1500

35700
Credit

$ 27,000.00

$ 7,000.00
$ 400.00
$ 1,800.00
$ 2,000.00
$ 600.00

$ 15,200.00
A) Working Capital
130600-50000=$80600
B) Current ratio
130600/50000=2.612
 Lettered Items
Accumulated Depreciation
S. Peters, Capital
Interest Expense
Salary Payable
Owner's Capital
Inventory
Patents
Prepaid Interest
Mortgage Payable
Land Held for Investment
 Classification
Property Plant and Equipment
Owners' Equity
Not on balance sheet
Current Liabilities
Current Assets
Current Assets
Intangible Assets
Current Assets
Non Current Liabilities
Investment