Hordichuk Painting Service Company was organized on January 20, 2014, by three individuals, each receiving 5,000 shares from the new company. The following is a schedule of the cumulative account balances immediately after each of the first nine transactions, ending on January 31, 2014.

Required
1. Analyze the changes in this schedule for each transaction; then explain the transaction. Transactions (a) and (b) are examples:
a. Cash increased $75,000, and Contributed Capital (shareholders' equity) increased $75,000. Therefore, transaction (a) was an issuance of the capital shares of the corporation for $75,000 cash.
b. Cash decreased $5,000, Equipment (an asset) increased $20,000, and Notes Payable (a liability) increased $15,000. Therefore, transaction (b) was a purchase of equipment for $20,000. Payment was made as follows: cash, $5,000; notes payable, $15,000.
2. Based only on the preceding schedule, prepare an unadjusted trial balance?

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Cumulative Balances Accounts Ь $75,000 Cash Accounts Receivable $44,000 26,000 $70,000 $85,000 $71,000 $61,000 12,000 $61,000 $46,000 26,000 $60,000 10,000 4,000 12,000 Supplies 5,000 Equipment Land Accounts Payable Notes Payable Contributed Capital Paint Revenue 20,000 20,000 20,000 18,000 20,000 18,000 20,000 20,000 18,000 20,000 18,000 18,000 18,000 3,000 19,000 3,000 19,000 75,000 41,000 1,000 19,000 19,000 75,000 19,000 75,000 15,000 75,000 27,000 15,000 75,000 19,000 75,000 41,000 75,000 75,000 41,000 1,000 23,000 41,000 27,000 27,000 Supplies Expense Wages Expense 1,000 23,000 23,000 8,000 8,000