Homework Answers
1.
| Cash | Accounts Receivable | Merchandise Inventory | Equipment | Notes Payable | Accounts Payable | Common Stock | Net Income | Revenue | Expenses | |
| a | $ 500,000 | $ 500,000 | ||||||||
| b | $ 250,000 | $ 250,000 | ||||||||
| c | $ (190,000) | $ (190,000) | $ 190,000 | |||||||
| d | $ 320,000 | $ 320,000 | ||||||||
| e | $ 455,000 | $ 455,000 | $ 455,000 | |||||||
| $ (290,000) | $ (290,000) | $ 290,000 | ||||||||
| f | $ (55,000) | $ (55,000) | $ 55,000 | |||||||
| g | $ (25,000) | $ 75,000 | $ 50,000 | |||||||
| h | $ (360,000) | $ (360,000) | ||||||||
| i | $ (18,000) | $ (18,000) | $ 18,000 | |||||||
| j | $ 412,000 | $ (412,000) | ||||||||
| k | $ 30,000 | $ (30,000) | $ 30,000 | |||||||
| l | $ 5,000 | $ (5,000) | $ 5,000 | |||||||
| Totals | $ 514,000 | $ 43,000 | $ 30,000 | $ 75,000 | $ 250,000 | $ 45,000 | $ 500,000 | $ (133,000) | $ 455,000 | $ 588,000 |
2.
| Account Titles | Debit | Credit | |
| a | Cash | $ 500,000 | |
| Common Stock | $ 500,000 | ||
| b | Cash | $ 250,000 | |
| Notes Payable | $ 250,000 | ||
| c | Salaries Expense | $ 190,000 | |
| Cash | $ 190,000 | ||
| d | Merchandise Inventory | $ 320,000 | |
| Accounts Payable | $ 320,000 | ||
| e | Accounts Receivable | $ 455,000 | |
| Sales Revenue | $ 455,000 | ||
| Cost of Goods Sold | $ 290,000 | ||
| Merchandise Inventory | $ 290,000 | ||
| f | Rent Expense | $ 55,000 | |
| Cash | $ 55,000 | ||
| g | Equipment | $ 75,000 | |
| Cash | $ 25,000 | ||
| Accounts Payable | $ 50,000 | ||
| h | Accounts Payable | $ 360,000 | |
| Cash | $ 360,000 | ||
| i | Utilities Expense | $ 18,000 | |
| Cash | $ 18,000 | ||
| j | Cash | $ 412,000 | |
| Accounts Receivable | $ 412,000 | ||
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