Question

:>roblem 3-27A R ecordingevents in a statements model and I-accounts a preparing a trial balance f he following acco unting eve nts a pply to Parks Co. for the yea r 201 1: !\sset Source Transactions

I. Began o pera ti o ns when th e business acq uired S 20.000 cash from th e iss ue stock. 2. Performed services and co llecte d cash of S, 1 000. 3. Co llec te d $4,500 of cash in advance for services to be provided over th e next 12 4. Provided SI 2.000 of service s o n account. 5. Purchased supp lies of $420 on acco unt. Asset Exchange Transactions 6. Pur c hased S4.000 of land for cash. 7. Collec ted S8.500 of cas h from account s receivable. 8. Purchased $500 of supp lies wi th cas h. 9. Pa id S3.600 in advance for one year's rent.

Answer 1

3-27A)
Recording events in a statements model
ie. Accounting Equation
Event	Assets					=	Liabilities +		Stockholders'Equity
	Cash	Acc Rec.	Supplies	Prepaid Rent	Land	=	Unearned Rev.	Acc payable	Comm Stock	S.Revenue
1	20000					=			20000
2	1000					=				1000
3	4500					=	4500
4		12000				=				12000
5			420			=		420
6	-4000				4000	=
7	8500	-8500				=
8	-500		500			=
9	-3600			3600		=
Balance	25900	3500	920	3600	4000	=	4500	420	20000	13000
G Total					37920	=	37920
Trial Balance:
Acc. Title	Debit $	Credit $
Cash	25900
Acc Rec.	3500
Supplies	920
Prepaid rent	3600
land	4000
Unearned revenue		4500
Account Payable		420
Common Stock		20000
Service Revenue		13000
Total	37920	37920