Page 83 – E2-3
The information below is for Gardiner Real Estate Agency:
Oct. 1 Lynn Gardiner begins business as a real estate agent with a cash investment of $15,000.
2 Hires an administrative assistant at a salary of $960 per month.
3 Buys office furniture for $1,900, on account.
6 Sells a house and lot to B. Rollins. Fees due from Rollins, $3,200 (not piad by Rollins at this time).
10 Receives cash of $140 as fee for renting an apartment.
27 Pays $700 on the balance indicated in the transaction of October 3.
30 Pays the administrative assistant $960 in salary for October.
Instructions
Prepare the debit/credit analysis for each transaction, as illustrated in the chapter.
Page 85 – P2-1A
Yee Company has the following accounts:
Account
(1)
Type of account
(2)
Financial
Statement
(3)
Normal
Balance
(4)
Increase
(5)
Decrease
1. Cash
2. Accounts
Receivables
3. Drawings
4. Interest
Expense
5. Land
6. Office
Supplies
7. Salary
Expense
8. Service
Revenue
Instructions
Complete the table by identifying the (1) type of account (e.g., asset liability, owner’s equity, revenue, expense), (2) what financial statement it is presented on, (3) the normal balance of the account, (4) whether the account is increased by a debit or credit, and (5) whether the account is decreased by a debit or credit, The first one is done for you as an example.

Page 83 – E2-6
Selected transactions for the Basler Company during its first month in business are presented below:
Sept 1 Invested $12,000 cash in the business.
5 Purchased equipment for $10,000, paying $4,000 in cash and the balance on account
25 Paid $3,000 cash on the balance owed for equipment
30 Withdrew $500 cash for personal use.
Basler’s chart of accounts show the following: Cash No. 101, Equipment No. 157, Accounts
Payable No. 201, Shirley Basler, Capital, No. 301, an Shirley Basler, Drawings, No. 306.
Instructions a) Journalize the transactions b) Post the transactions to the accounts in the ledger
Page 84 – E2-8
Selected transactions from the journal of L. Meche, investment broker, are presented below:
Date Account Titles and Explanation Ref. Debit Credit
2003
Aug. 1 Cash
10 Cash
L. Meche, Capital
Service Revenue
12 Office Equipment
Cash
Notes Payable
25 Accounts Receivable
Service Revenue
31 Cash
Accounts Receivable
2,600
2,600
2,400
2,400
4,000
1,000
3,000
1,400
1,400
900
900
Instructions a) Post the transactions to T accounts b) Prepare a trial balance at August 31, 2003.

Page 86 – P2-3A
Maria Rojas is a licensed architect. During the first month of operation of her business, the following events and transactions occurred:
Apr. 1 Invested $15,000 cash.
1Hired a secretary-receptionist at a salary of #1,200 monthly
2 Paid office rent for the month, $800.
3 Purchased architectural supplies on account from Halo Company, $1,500.
10 Completed blueprints on a carport and billed client $900 for services.
11 Received $500 cash advanced rom R. Welk for the design of a new home.
20 Received $1,500 cash for services completed and delivered to P. Donahue.
30 Paid Secretary-receptionist for the month, $1,200
30 Paid $600to Halo Company on account
Maria uses the following chart of accounts:
 Cash, No 101

Accounts Receivable, No. 112

Supplies No 126

Accounts Payable No. 201

Unearned Revenue No 209

Maria Rojas, Capital, No. 301

Service Revenue No. 400

Salaries Expense 726

Rent Expense 72
Instructions a) Journalize the transactions b) Post to the ledger accounts c) Prepare a trial balance as of April 30, 2003.