Exercise 1:

Robert has recently decided to open his new business of retail of products for pet care in a store located in the center of Barcelona. During the month of May 2021, Robert's new company 4PETS, Ltd. realized the following transaction:

3 of May: 4PETS, Ltd. issued to Robert 200,000 shares in exchange for $200,000 of share capital

3th of May: 4PETS, Ltd purchased a shop next to the cathedral for $300,000. The price of the land is $150,000. Robert paid $80,000 in cash and issued a note payable for the remaining part.

4th of May: 4PETS, Ltd purchased furniture to FURNITURES4ALL, Inc. for $35,000. 4PETS, Ltd paid $20,000 in cash, the remaining $15,000 will have to be paid on the 29th of May.

5th of May: 4PETS, Ltd purchased merchandise on account to ALLANIMALS, Inc for $53,000

6th of May: 4PETS, Ltd makes some installations in the shop for $8,500 paid in cash

7th of May: 4PETS, Ltd hires one employee with a salary $1,500/ month. Salaries are paid on the following day 2 of each month.

16 of May, 4PETS, Ltd purchases merchandise to DRESS BETTER; Lt. on account for $20,000.

19 of May, the company pays the invoice to ALLANIMALS, Inc

22 of May, 4PETS, Ltd receives an electricity bill for $600 payable in June

29 of May, 4PETS, Ltd pays the account payable to FURNITURES4ALL, Inc

29 of May: 4PETS, Ltd records the sales of the month of May that amount to $87,000. All sales have been paid in cash.

1. Record the transactions of the company on the General Journal 2. Post the transactions on the appropriate ledger accounts 3. Prepare an unadjusted trial balance on May 30.

Use the following accounts: Cash, Capital Stock, Land, Building, Note payable, Furniture, Inventory, installations, Accounts payable, Salaries payable, Salary expense, Electricity expense, Revenues (Sales)

Exercise 2:

Calculate the missing balances of cash and retained earning accounts in the following charts

Assets

Liabilities

Cash 7500

Accounts payable 43000

Accounts receivable 2600

Notes payable 228000

Land 120000

Salaries payable 12500

Building 390000

Taxes payable 38000

Office Equipment 8000

Prepaid insurance 1200

Stockholders equity

Inventory 27000

Capital stock 200000

Retained earnings

Assets

Liabilities

Cash

Accounts payable 43000

Accounts receivable 2600

Notes payable 228000

Land 267000

Salaries payable 12500

Building 578000

Taxes payable 38000

Office Equipment 32000

Prepaid insurance 1200

Stockholders equity

Inventory 27000

Capital stock 100000

Retained earnings 487000