Transaction Assets = Liabilities +
Stockholders’
Equity
1. Obtain a loan at the
bank Increase = Increase + No effect
2. Issue common stock
to stockholders for
3. Purchase equipment
4. Pay cash for insurance
5. Pay cash for workers’
salaries in the current
7. Purchase office
8. Provide services to
9. Provide services to
10. Pay cash dividends to
11. Pay cash for utilities
*One asset (machine) increases and another asset (cash) decreases
Transaction Assets = Liabilities +
Stockholders’
Equity
1. Issue common stock in
3. Pay cash for insurance in
+$2,400
PROBLEMS: SET C
Problem 2-1C
Problem 2-2C
4. Pay cash for workers’
period, $7,200.
5. Pay accounts payable,
6. Purchase office supplies on
7. Provide services to
customers on account,
$12,300.
9. Pay cash dividends to
10. Pay cash for utilities in the
Account Title Type of Account
Normal Balance
(Debit or Credit)
1. Service Revenue Revenue Credit
2. Common Stock Stockholders’ equity Credit
3. Dividends Dividends Debit
4. Salaries Expense Expense Debit
Problem 2-3C
June 2 Debit Credit
Cash 300
June 5
Repairs and Maintenance Expense 175
June 7
Cash 500
June 14
No entry for Reed.
June 19
Accounts Payable 225
June 25
Utilities Expense 200
June 28
Unearned Revenue 300
June 30
Notes Payable 500
Problem 2-4C
Transactions for Reed
June 2 Debit Credit
Prepaid Consulting 300
June 5
Accounts Receivable 175
June 7
Notes Receivable 500
June 14
Supplies 250
June 19
Cash 225
Accounts Receivable 225
June 25
No entry for Sophie.
June 28
Consulting Expense 300
June 30
Cash 500
Problem 2-5C
Transactions for Sophie
Eli’s Tax Services Olivia’s Cleaning Services
Assets = Liabilities +
Stockholders’
Equity Assets = Liabilities +
Stockholders’
Equity
June 2 +$300 = +$300 +$0 +$300
−$300 =$0 +$0
5$0 =+$175 +−$175 +$175 =$0 ++$175
+
$500
Problem 2-5C (concluded)
Accounts Debits Credits
Cash $12,000
Accounts Receivable 12,000
Supplies 5,000
Prepaid Insurance 4,000
Equipment, net 19,000
$90,000 $90,000
Problem 2-6C