A201 PDF Homework Ch 2 FY 2023 Problem 1 Below are external transactions for Shockers Incorporated. Prepare the journal entries and explain what happens to the accounting equation. 1. Issue common stock in exchange for $400,000 cash. 2. Purchased equipment for $23,000 by signing a note payable. 3. Provided $10,000 services to customers on account. 4 . Paid $2,500 rent for the month. 5. Paid $800 insurance for the month. 5. Collected $8,000 from customers on account. Problem 2 At the beginning of April, Owl Corporation started their business. During the month of April, Owl had the following external transactions. Prepare the journal entries in proper form and post to T-accounts. Prepare a trial balance. 1. Issued common stock for cash, $44,000 2 . Provide services to customers on account $8,500 3 . Provide services to customers in exchange for cash, $3,200 4. Purchase equipment and pay cash, $7,600 5. Paid rent for April $1,100 6. Paid employees' salaries for April, $3,600 7. Paid dividends to stockholders, $2,000 Problem 3 Below is a list of common accounts. Indicate whether the normal balance of each account is a debit or credit.) Account Debit or Credit Account Debit or Credit 1. Cash Equipment 2. Service Revenue Retained Earnings 3 . Salaries Expense 7. Utilities Expense 4 . Accounts Payable 8. Accounts Receivable