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Please use the following account names for this homework:

Assets: Cash Accounts Receivable Equipment Vehicles Supplies

Liabilities: Accounts Payable Unearned Revenue

Equity: Common Stock Additional Paid-in Capital Service Revenue

Part A:

Please analyze the following transactions (Figure out the increases and decreases in assets, liabilities, and equity as I did in class.) and make the journal entries for these transactions:

A brand new company issued 3,000 shares of common stock. The company received $25 per share from the investors, and the par value is $2 per share.

The company purchased equipment for $6,000 and paid cash.

The company purchased office supplies for $1,500 on account. (On account means the company did not pay for the supplies and must pay for them later.)

The company purchased equipment for $15,000. It paid $7,000 in cash and will pay the rest later.

The company provided a service to a customer and received $5,000 in cash immediately.

The company provided a service to another customer and gave the customer an invoice for $12,000.

The company received $4,800 in advance from a customer for a service that it will provide to the customer over the next 6 months.

The company received $3,000 in cash from the customer who owed $12,000 from transaction #6.

Part B

Create T accounts for the accounts listed above, and post the journal entries created in Part A to these T accounts.

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