1) Identify, analyze, record, and post transactions: Below are all of the transactions for The Tim Booth Dance Academy, which provides dancing classes to customers, for December 2017. Assume that December is the 1^st month of business for The Tim Booth Dance Academy (i.e. all accounts have a beginning balance on December 1^st, 2017 of $0):

12/11/17: Receive a bill for December rent of $3,500, payable on January 1^st, 2018.

12/18/17: Purchase equipment on account for $1,490.

12/21/17: Provide dance classes to customers for $900 on account.

12/27/17: Pay creditors from transaction b. $700 cash.

Part 1 account identification and transaction analysis (1pt): For each of the above transactions, describe the net effect (increase, decrease, or no effect) of each transaction on assets, liabilities, and stockholders equity using the accounting equation. I have completed transaction a. for you as an example. HINT: Remember, the accounting equation must always remain in balance!

	Assets	=	Liabilities	+	Stockholders Equity
a.	No effect		Increases $3,500		Decreases $3,500
b.
c.
d.

Part 2 Account Identification and transaction analysis (1pt): 1) Prepare a transaction worksheet summarizing all of the transactions for The Tim Booth Dance Academy. I have provided a framework for you and completed transaction a. for you as an example. HINT: Make sure the accounting equation remains in balance!

	Assets			=	Liabilities		+	Stockholders Equity
	Cash	Accounts Rec. (A/R)	Equipment		Accounts Payable (A/P)	Rent Payable		Common Stock	Retained Earnings
									Rev.	(Exp.)	(Div.)
12/1	$0	$0	$0		$0	$0		$0	$0	$0	$0
a.						+$3,500				($3,500)
b.
c.
d.

Part 3 Record transactions using Journal Entries (1.5pts): Record all of the above transactions using journal entries. Assume The Tim Booth Dance Academy uses the following accounts: Cash, A/R, Equipment, A/P, Rent payable, Service revenue, and rent expense. I have completed transaction a. for you as an example.

1/1/18 DEBIT CREDIT

Rent expense $3,500

Rent Payable $3,500

To record December rent expense, payable in January.

THIS PROBLEM CONTINUES ON THE NEXT PAGE!

Part 4 Post transactions to T-Accounts (1.5pts): Post all of the above transactions to T-Accounts. Assume the opening balance in each of the accounts is zero ($0).