Exercise E3-4

A)

1. The company gave shares of stock to stockholders for $20,000 cash 2. The company purchased $5,000 equipment on account with $1,000 paid in cash accruing a balance of $4,000. 3. The company paid $750 for supplies. 4.Company receives $4,100 of cash for services rendered, along with billing $5,400 from customer of services rendered. 5. The company paid $1,500 with cash on accounts payable. 6. The company paid a $2,000 dividend. 7. The company paid $800 for this month rent. 8. The company collects $450 from a customer. 9. The company pays the earnings of employees in salaries of $3,000. 10. The company pays $300 on utilities account.

B) The stockholders equity increased $3,400.

C) The net income is $5,400.

Exercise E3-9

|Date |Account title |Debit |Credit |
|4 |Accounts Payable |700 | |
| |Cash | |700 |
|7 |Service revenue |6800 | |
| |Accounts Receivable | |6800 |
|8 |Supplies |850 | |
| |Accounts Payable | |850 |
|9 |Equipment |1000 | |
| |Cash | |1000 |
|17 |Salaries expense |530 | |
| |Cash | |530 |
|22 |Cash |900 | |
|