Page 33 - Account for Ag - 2019

CH 2] Accounting Equation 2-9

PROBLEMS

2-1. Paul Overland has organized a Farm Equipment Service Co. He Services and repairs the equipment of his
customers on an on-call basis. Record the following transactions in tabular form using the following
headings: ASSETS: Cash, Supplies, Equipment; LIABILITIES: Canyon Hardware; EQUITY: Paul Overland.

Assets = Liabilities + Equity
Cash + Supplies + Equipment = Canyon Hardware + Paul Overland

a) Invested cash $800 and equipment $425.
b) Purchased supplies for cash, $150.
c) Collected $210 from customer.
d) Paid helper $75. 2
e) Purchased supplies, $10, and equipment, $200, on account from Canyon Hardware.
f) Received $195 from customers.
g) Paid Helper $75.
h) Paid Canyon Hardware in full of account.

2-2. Patty Miller is the owner of Sunny Eggs, selling eggs to local clients. Record the following transactions for
June in tabular form. The headings to be used are:

Assets = Liabilities + Equity
Cash + Eggs + Chicks + Equip + Supplies = Farmers Merch + Patty Miller

a) Current investment: $9,000 in cash, $4,200 eggs and $7,200 chicks.
b) Purchased cages and equipment for $2,250 in cash.
c) Bought feed and egg cartons on account from Farmers Mercantile, $4,750.
d) Sold eggs costing $1,300 for $3,300 cash.
e) Paid wages and miscellaneous expenses, $875.
f) Paid Farmers Mercantile $3,750 on account.

At the end of June, Miss Miller decided to enlarge the business to include chick sales. Record the following
transactions for July.
g) Purchased additional equipment for $1,500 cash.
h) Purchased fertile eggs on account from Farmers Mercantile, $2,500.
i) Sold eggs costing $2,000 for $5,100 cash.
j) Sold chicks for $4,200, cost of $1,750.
k) Paid Farmers Mercantile in full of account.
l) Paid salaries and miscellaneous expenses, $1,250.

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