Exercise 1:

1. Issued share capital for $10,000 cash.

2. Received a bank loan for $3,000.
3. Purchased equipment for $3,000 cash.
4. Purchased a truck for $8,000; paid $3,000 cash and incurred a bank loan for the
balance.
5. Paid $2,000 cash to reduce the bank loan.
6. Received $400 as an advance payment for repair services to be performed in the
future.
7. Performed repairs for $8,000 cash and $2,000 on credit.
8. Dividends of $200 were paid in cash to the only shareholder, Bob Baldwin.
9. The corporation paid operating expenses for the month as follows:
$1,600 for rent; $3,500 for salaries; and $2,000 for supplies expense. The $700 for
truck operating expenses (e.g., oil, gas) was on credit.
Required:
1. Analyze each transaction and show the effect of each on the accounting equation
for a corporation?
2. Post the required journal entries to the respective ledger accounts

Exercise 2:
An Nam works as a sole trader and provides surfing lessons throughout the world.
She commences her business, known as Surf to the Beach, on 1 January 2021.
You are provided with Surf to the Beach’s chart of accounts, as well its transactions
for the month of January. You are to prepare a statement of profit or loss for Surf to
the Beach for the month of January 2021, as well as a balance sheet as at 31 January
2021. In doing so, you will need to:
1. Analyze each transaction and show the effect of each on the accounting equation
for a corporation?
2. Post the required journal entries to the respective ledger accounts
 Date Description Amount
2 Jan 2022 Cash contribution from NGUYEN NAM as owner $220 000
2 Jan 2022 Acquired van with cash, for carrying musical instruments $ 55 000
2 Jan 2022 Purchased musical instrument maintenance equipment for cash $ 19 000
3 Jan 2022 Borrowed cash from Musicians’ Bank $ 25 500
5 Jan 2022 Performed musical services for cash $ 15 800
5 Jan 2022 Paid wages with cash to support crew $ 1 200
8 Jan 2022 Paid travelling expenses with cash $ 650
11 Jan 2022 Paid for repairs to van (motor vehicle) with cash $ 1 950
14 Jan 2022 Purchased new guitar (musical instrument) with cash $ 3 200
14 Jan 2022 Performed musical services for The Playroom on credit term $ 11 500
14 Jan 2022 Paid wages with cash to support crew $ 1 300
21 Jan 2022 Incurred advertising expenses, which are to be paid within 30 days $ 5 500
22 Jan 2022 Paid wages with cash to support crew $ 2 800
22 Jan 2022 Acquired new guitar for cash $ 13 200
22 Jan 2022 Paid travelling expenses with cash $ 600
24 Jan 2022 Received cash from debtor – The Playtroom $ 11 500
25 Jan 2022 Performed musical services for MARIO’s Hotel on credit Terms $ 10 000
25 Jan 2022 Paid wages with cash to support crew $ 2 500
25 Jan 2022 Paid travelling expenses with cash $ 1 100
28 Jan 2022 Paid interest to MB’ Bank $ 1 300
31 Jan 2022 MR NAM withdrew cash for personal use $ 15 200

Exercise 3:
1. Sara invested $10,000 cash in a business bank account to open her business,
named Sara service Comapny.
2. Sara performed service for a client and collected $3,000 cash
3. Sara performed service for a client and billed the client for $500 on account
receivable.
4. Sara performed accounting service of $700 for a client, who paid $300 cash
immediately.
5. Sara paid the following cash expenses: office rent: $900; employee salary,
$1,500 and utilities , $500.
6. Sara receive a telephone bill for $120 and will pay this expense next week.
 7. Sara collected $200 cash from the client established in transaction 3.
8. Sara paid the telephone bill that was received and recorded in transaction 6.
9. Sara withdrew $1,100 cash for personal use.
Required:
1. Analyze each transaction and show the effect of each on the accounting
equation for a corporation?
2. Open the following accounts, with the balancces indicated in the ledger of
AZURA computer service centre. Use T account format.

Exercise 4:
On March 1, 202X, list the etity’s assets, liabilities and owner’s equity of Macron
Joint Ventre on that date as below:
Asset Liabilities Owner’s Equity
Cash $26,000 Account $2,000 AZURA $28,500
Payable Capital
Acount $4,500
Receivable
During March the business engaged in the following transactions:
1. Macron borrowed $45,000 from the bank. He signed a note payable in the
name of the business. Tk 112 tăng -> nợ
TK 331 tăng -> có
TK 111 giảm -> có
2. He paid cash of $40,000 to a real estate company to accquire land. TK 213 tăng -> nợ

3. He performed service for a customer and received cash of $5,000. TK 111 tăng -> nợ
TK 511 tăng -> có
on credit: trả sau
4. He purchased supplies on credit, $300. TK 153 tăng -> nợ
TK 331 tăng -> có
on account: khách
hàng chưa thanh toán 5. He performed customer service and earned revenue on account, $2,600. TK 131 tăng -> nợ
TK 511 tăng -> có
6. He paid $1,200 on account. TK 111 giảm -> có
TK 131 tắng -> nợ
sale department
7. He paid the following cash expenses:salaries, $3,000; rent, $1,500; and TK 112 giảm -> có
TK 641 tăng: nợ
interest, $400.
8. He received $3,100 on account. at sale department Dr Acc 112
Cr Acc131
administrative department
9. He received a $200 utility bill that will be paid next week.
10. Macron withdrew $1,800 for personal use.
Required:
1. Analyze each transaction and show the effect of each on the accounting
equation for a corporation?
 2. Open the following accounts, with the balancces indicated in the ledger of
AZURA computer service centre. Use T account format.
3. Journalize the preceding transactions. Key journal entries by transaction
number.
4. Post to the ledger

Exercise 5:
The Marchetti Soup Company entered into the following transactions during the
month of June:
(1) purchased inventory on account for $165,000;
(2) paid $40,000 in salaries to employees for work performed during the month;
(3) sold merchandise that cost $120,000 to credit customers for $200,000;
(4) collected $180,000 in cash from credit customers.
(5) paid suppliers of inventory $145,000.
Required:
1. Analyze each transaction and show the effect of each on the accounting
equation for a corporation.
2. Prepare journal entries for each of the transactions listed.
3. Post the journal entries prepared in required 2 to T-accounts. Assume that the
opening balances in each of the accounts is zero except for cash, accounts
receivable, and accounts payable that had opening balances of $65,000,
$43,000, and $22,000, respectively.
Exercise 6:
The following transactions occurred during March 2021 for the Wainwright
Corporation. The company owns and operates a wholesale warehouse.
1. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a
note payable to the seller was signed for the balance owed.
2. Purchased inventory on account at a cost of $90,000.
3. Credit sales for the month totaled $120,000. The cost of the goods sold
was $70,000.
4. Paid $5,000 in rent on the warehouse building for the month of March.
5. Paid $6,000 to an insurance company for fire and liability insurance for a
one-year period beginning April 1,202X.
6. Paid $70,000 on account for the merchandise purchased in 3.
 7. Collected $55,000 from customers on account.
8. Paid shareholders a cash dividend of $5,000.
Required:
1. Analyze each transaction and show the effect of each on the accounting equation
for a corporation.
Example:
1. Assets = Liabilities + Paid in Capital +Retained earnings
2. Prepare journal entries to record each of the transactions listed. Assume that the
opening balances in each of the
accounts is zero. Prepare a trial balance from the ending account balances.

Exercise 7:
May. 1 Issued common stock in exchange for $100,000 cash.
May. 2 Purchased inventory on account for $35,000.
May. 4 - Paid an insurance company $2,400 for a one-year insurance policy. -
- Prepaid insurance was debited for the entire amount.
May. 10 Sold merchandise on account for $12,000. The cost of the merchandise
was $7,000.
May. 15 Borrowed $30,000 from a local bank and signed a note. Principal and
interest at 10% is to be repaid in six months.
May. 20 Paid employees $6,000 salaries for the first half of the month.
May. 22 Sold merchandise for $10,000 cash. The cost of the merchandise was
$6,000.
May. 24 Paid $15,000 to suppliers for the merchandise purchased on May 2.
May. 26 Collected $6,000 on account from customers.
May. 28 Paid $1,000 to the local utility company for May gas and electricity.
May. 30 Paid $4,000 rent for the building. $2,000 was for May rent, and $2,000
for June rent. Prepaid rent and rent expense were debited for their
appropriate amounts.
Required:
1. Prepare general journal entries to record each transaction. Omit explanations.
2. Post the entries to T-accounts.
Exercise 8
The general ledger of the Karlin Company, a consulting company, at January 1, 2021,
contained the following account balances:

Account Title Debits Credits

Cash 30,000
Accounts receivable 15,000
Equipment 20,000
Accumulated depreciation 6,000
Salaries payable 9,000
Capital 40,500
Retained earnings 9,500
Total 65,000 65,000

The following is a summary of the transactions for the year:

a. Service revenue, $100,000, of which $30,000 was on account and the balance was
received in cash.
b. Collected on accounts receivable, $27,300.
c. Paid salaries, $50,000 (of which $9,000 was for salaries payable at the end of the
prior year).
d. Paid miscellaneous expense for various items, $24,000.
e. Purchased equipment for $15,000 in cash.
f. Paid $2,500 in cash dividends to shareholders.
Required:
1. Set up the necessary T-accounts and enter the beginning balances from the trial
balance.
2. Prepare a general journal entry for each of the summary transactions listed above.