2-1A Prairie Park was started on April 1 by C. J. Amaro and associates.

The following selected events

and transactions occurred during April.
Apr. 1 Stockholders invested $50,000 cash in the business in exchange for common stock.
4 Purchased land costing $30,000 for cash.
8 Incurred advertising expense of $1,800 on account.
11 Paid salaries to employees $1,500.
12 Hired park manager at a salary of $4,000 per month, effective May 1.
13 Paid $1,500 cash for a one-year insurance policy.
17 Declared and paid a $1,400 cash dividend.
20 Received $5,700 in cash for admission fees.

25 Sold 100 coupon books for $30 each. Each book contains 10 coupons that entitle the holder to one
admission to the park.
30 Received $8,900 in cash admission fees.
30 Paid $900 on balance owed for advertising incurred on April 8.
Prairie uses the following accounts: cash, prepaid Insurance, Land, Accounts Payable, Unearned Service
Revenue, Share Capital Ordinary, Dividends, Service Revenue, Advertising Expense and Salaries and
Wages Expense.

2-2A Kara Shin is a licensed CPA. During the first month of operations of her business, Kara Shin, Inc.,
the following events and transactions occurred.
May 1 Stockholders invested $20,000 cash in exchange for common stock.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $1,500 of supplies on account from Hartig Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a tax assignment and billed client $2,800 for services provided.
12 Received $3,500 advance on a management consulting engagement.
17 Received cash of $1,200 for services completed for Lucille Co.
31 Paid secretary-receptionist $2,000 salary for the month.
31 Paid 40% of balance due Hartig Supply Company.
Kara uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126
Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No.
400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

a) Journalize the transactions. (Record entries in the order displayed in the problem statement. If
no entry is required, select "No entry" for the account titles and enter 0 for the amounts.
Credit account titles are automatically indented when amount is entered.
b) Post to the ledger accounts. (Post the entries into ledger in the order displayed in Part 1.)
c) Prepare a trial balance on May 31, 2014.
Mandy Arnold opened a law office, Mandy Arnold, Attorney at Law, on July 1, 2014. On July 31, the
statement of financial position showed Cash $4,000, Accounts Receivable $1,500Supplies $500,
Equipment $5,000, Accounts Payable $4,200, Share CapitalOrdinary $6,000, and Retained Earnings
$800. During August, the following transactions occurred.

Arnold,
July
Attorney
the
statement
at Law,
of
on
financial
July
1,the
position
2014.
On
showed
$1,50
Cash
$4,000,
Accounts
Receivable
e)$1,000,
031,inis
Payable
$6,000,
and
$4,200,
Retained
Share
Earnings
CapitalOrdinary
$800.
During
August,
the
following
transactions
occurred.
receivable
due
from
payable
due.
$3,000
is
due
September.
collected
inclients.
cash
and
the
balance
paying
$400
in
cash
and
balanc

1. Collected $1,400 of accounts receivable due from clients.

2. Paid $2,700 cash for accounts payable due.
3. Earned revenue of $7,900 of which $3,000 is collected in cash and the balance is due in September.
4. Purchased additional office equipment for $1,000, paying $400 in cash and the balance on account.

. Paid
and
advertising
salaries
$3,000,
expenses
$350.
for
August
$900,
6.
Declared
and
paid
arent
$450
dividend.
payable.
the
money
was
borrowed
on
acash
4-month
note
8.
Incurred
utility
expenses
for
month
on
acco
5. Paid salaries $3,000, rent for August $900, and advertising expenses $350.
6. Declared and paid a $450 cash dividend.
7. Received $2,000 from Standard Federal Bank; the money was borrowed on a 4-month note payable.
8. Incurred utility expenses for month on account $210.