1. The Expanded Accounting Equation ______ ASSETS = LIABILITIES + Owner’s EQUITY Prepaid Accts. Pay./ B. Trevino, Cash + Supplies + Insurance = Ling Music Sup. + Capital____ $0 + $0 + $0 = $0 + $0 Bal. +10,000 +10,000__(1) $10,000 + 0 + 0 = 0 + $10,000 Bal. - 1,577 +1,577___(2) 8,423 + 1,577 + 0 = 0 + 10,000 Bal. _- 1,200 +1,200__________________________________ (3) 7,223 + 1,577 + 1,200 = 0 + 10,000 Bal. _____________+2,720 +2,720____________________ (4) 7,223 + 4,297 + 1,200 = 2,720 + 10,000 Bal. - 1,360 - 1,360____________________(5) $5,863 + $4,297 + $1,200 = $1,360 + $10,000 Bal. Transactions: (1) Received cash from owner as an investment, $10,000 (2) Paid cash for supplies, $1,577 (3) Paid cash for insurance, $1,200 (4) Bought supplies on account from Ling Music Supplies, $2,720 (5) Paid cash on account to Ling Music Supplies, $1,360

2. The Expanded Accounting Equation ______ ASSETS = LIABILITIES + Owner’s EQUITY Prepaid Accts. Pay./ B. Trevino, Cash + Supplies + Insurance = Ling Music Sup. + Capital_ $0 + $0 + $0 = $0 + $0 Bal. +10,000 +10,000__ (1) $10,000 + 0 + 0 = 0 + $10,000 Bal. - 1,577 +1,577____(2) 8,423 + 1,577 + 0 = 0 + 10,000 Bal. - 1,200 +1,200________________________________ (3) 7,223 + 1,577 + 1,200 = 0 + 10,000 Bal. ____________+2,720 +2,720________________ (4) 7,223 + 4,297 + 1,200 = 2,720 + 10,000 Bal. - 1,360 - 1,360________________ (5) $5,863 + $4,297 + $1,200 = $1,360 + $10,000 Bal.

3. AP1-2 Expanded Accounting Equation ______ ASSETS = LIABILITIES + Owner’s EQUITY Prepaid AP/ AP/ Frank Mori, Cash + Supplies + Insurance = Swan’s + York + Capital____ $0 + $0 + $0 = $0 + $0 + $0 Bal. + 2,000 +2,000__(1) $ 2,000 + 0 + 0 = 0 + 0 + $ 2,000 Bal. - 600 + 600 ___(2) 1,400 + 0 + 600 = 0 + 0 + 2,000 Bal. _ + 100 ____________ +100________________________ (3) 1,400 + 100 + 600 = 100 + 0 + 2,000 Bal. _____________+ 500 + 500________________ (4) 1,400 + 600 + 600 = 100 + 500 + 2,000 Bal. - 100 -100________________________(5) 1,300 + 600 + 600 = 0 + 500 + 2,000 Bal. __- 300 -300________________ (6) 1,000 + 600 + 600 = 0 + 200 + 2,000 Bal. __- 500 + 500_____________________________________________ (7) 500 + 1,100 + 600 = 0 + 200 + 2,000 Bal. + 500 + 500 (8) $1,000 + $1,100 + $600 = $0 + $200 + $2,500 Bal. Transactions: (1) Received cash from owner as an investment, $2,000 (2) Paid cash for insurance, $600 (3) Bought supplies on account from Swan’s Supply Company, $100 (4) Bought supplies on account from York Company, $500 (5) Paid cash on account to Swan’s Supply Company, $100 (6) Paid cash on account to York Company, $300 (7) Paid cash for supplies, $500 (8) Received cash from owner as an investment, $500