Hordichuk Painting Service Company was organized on January 20, 2017, 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, 2017. 

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