1. Chapter 1 Exercises Accounting and the Business Environment

2. Business Transactions
In-Class Exercise (Form groups and work exercise):
Exercise No. Page
E Affect of Transactions on the Accounting Equation
(Set up equation format, as reflected on the next chart, to complete the exercise)

3. Business Transactions
Exercise Page
E Affect of Transactions on the Accounting Equation
(Also prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet)

4. Business Transactions Record transactions on the equation form.
Caren Smith opened a medical practice. During July, the first month of operation, the business, titled Caren Smith, M.D., experienced the following events:
July 6. Smith contributed $55,000 in the business by opening a bank account in the name of C. Smith, M.D. The corporation issued common stock to Smith.
9. Paid $46,000 cash for land Purchased medical supplies for $1,800 on account Officially opened for business.
20. Paid cash expenses: employees salaries, $1,600; office rent, $900; utilities, $ Earned service revenue for the month, $8,000, receiving cash Paid $1,100 on account.
Record transactions on the equation form.

5. Business Transactions
$61,100
$61,100

6. Business Transactions
Income Statement

7. Business Transactions
$ 8,000

8. Business Transactions Statement of Retained Earnings

9. Business Transactions

10. Business Transactions
Balance Sheet

11. Business Transactions

12. Business Transactions
End of Exercise