1. Question: Green Wave Company plans to own and operate a storage rental facility.

Required:

For the first month of operations, the company had the following transactions. For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, (1) assets increase and (2) stockholders’ equity increases.

2. Question: Terrapin Company engages in the following external transactions for November

• Purchase equipment in exchange for cash of $22,500.
• Provide services to customers and receive cash of $5,200.
• Pay the current month's rent of $1,300.
• Purchase office supplies on account for $900.
• Pay employee salaries of $1,700 for the current month.

Required:

Record the transactions. Terrapin uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

3. Question: Consider the recorded transactions below.

Required:

Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,600; Accounts Receivable, $3,400; Supplies, $320; Accounts Payable, $2,700; Deferred Revenue, $220. Service Revenue and Advertising Expense each have a beginning balance of zero.

4. Question: Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,100; Buildings, $41,000; Salaries Payable, $300; Common Stock, $21,000; Accounts Payable, $1,500; Utilities Expense, $2,300; Prepaid Insurance, $1,100; Service Revenue, $18,100; Accounts Receivable, $2,800; Cash,

$2,100; Salaries Expense, $5,000; Retained Earnings, $14,500.

Required:

Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.

5. Question: Pirates Incorporated had the following balances at the beginning of September.

The following transactions occur in September.

September 1 Provide services to customers for cash, $3,200.

September 2 Purchase land with a long-term note for $4,900 from Crimson Company.

September 4 Receive an invoice for $350 from the local newspaper for an advertisement that appeared on September 2. September 8 Provide services to customers on account for $4,500.

September 10 Purchase supplies on account for $1,000.

September 13 Pay $2,500 to Crimson Company for a long-term note. September 18 Receive $3,500 from customers on account.

September 20 Pay $750 for September's rent.

September 30 Pay September's utility bill of $1,250.

September 30 Pay employees $2,500 for salaries for the month of September. September 30 Pay a cash dividend of $1,000 to shareholders.