Bernard Chua

Exercise 3.6

1. Provided an ocean fishing expedition for a credit customer; payment is due August 10.

Income Statement Balance Sheet

Transaction 1 Revenue – Expenses = Net Income Assets = Liabilities + Owner’s Equity I NE I I NE I

2. Paid Marine Service Center for repairs to boats performed in June. (In June, Satka Fishing Expeditions, Inc., had received and properly recorded the invoice for these repairs.)

Income Statement Balance Sheet

Transaction 2 Revenue – Expenses = Net Income Assets = Liabilities + Owner’s Equity NE I D D D NE

3. Collected the full amount due from a credit customer for a fishing expedition provided in June.

Income Statement Balance Sheet

Transaction 3 Revenue – Expenses = Net Income Assets = Liabilities + Owner’s Equity I NE I I NE NE

4. Received a bill from Baldy’s Bait Shop for bait purchased and used in July. Payment is due August 3.

Income Statement Balance Sheet

Transaction 4 Revenue – Expenses = Net Income Assets = Liabilities + Owner’s Equity NE I D I I NE

5. Purchased a new fishing boat on July 28, paying part cash and issuing a note payable for the balance. The new boat is first scheduled for use on August 5.

Income Statement Balance Sheet

Transaction 5 Revenue – Expenses = Net Income Assets = Liabilities + Owner’s Equity NE I D I I I 6. Declared and paid a cash dividend on July 31.

Income Statement Balance Sheet

Transaction 6 Revenue – Expenses = Net Income Assets = Liabilities + Owner’s Equity NE NE NE D NE D
Exercise 3.9

a. Issued stock in exchange for cash b. Purchased land. Made partial payment with cash and issued a note payable for