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1. Transaction Analysis

   During December, Cynthiana Refrigeration Service engaged in the following transactions:

   1. On December 3, Cynthiana sold a 1-year service contract to Cub Foods for $11,000 cash.
   2. On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,300 in cash for the service call.
   3. On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $30,500. Cynthiana paid $5,500 down and signed a 1-year note for the balance.
   4. Cynthiana received a $3,200 order of repair parts from Carrier Corporation on December 19. Carrier is expected to bill Cynthiana for $3,200 in early January.
   5. On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $300 cash. Cynthiana gave the turkeys to its employees as a Christmas gift.

   Required:

   For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave the cells blank. Enter decreases in account values as negative numbers. If an item (i.e. Assets, Liabilities) is both increased and decreased by a transaction, enter the net effect of the transaction on the item.

   	Assets	=	Liabilities	+	Stockholders' Equity
   					Contributed Capital	+	Retained Earnings
   a.
   b.
   c.
   d.
   e.

1. nferring Transactions from T-Accounts

   The following T-accounts summarize the operations of Chen Construction Company for July 2019.

   Assets					Liabilities					Stockholders Equity
   Cash					Accounts Payable					Common Stock
   7/1	200						1,100	7/1				4,000	7/1
   7/2	1,000	150	7/5		7/5	150	250	7/4				1,000	7/2
   7/7	2,500	700	7/9
   7/11	150	750	7/14							Retained Earnings
   												250	7/1
   Accounts Receivable										7/14	750	2,500	7/7
   7/1	1,400	150	7/11
   Supplies
   7/1	750
   7/4	250
   Land
   7/1	3,000
   7/9	700

   Required:

   1. Conceptual Connection: Assuming that only one transaction occurred on each day (beginning on July 2) and that no dividends were paid, describe the transactions that most likely took place.

   July 2:

   • Bought supplies on account.
   • Common stock was issued for cash.
   • Performed services for cash.
   • Received cash for payment of an account receivable.

   July 4:

   • Bought land for cash.
   • Bought supplies on account.
   • Paid an expense with cash.
   • Performed services for cash.

   July 5:

   • Bought land for cash.
   • Common stock was issued for cash.
   • Paid an expense with cash.
   • Paid on a previous account payable.

   July 7:

   • Bought supplies on account.
   • Paid an expense with cash.
   • Performed services for cash.
   • Received cash for payment of an account receivable.

   July 9:

   • Bought land for cash.
   • Common stock was issued for cash.
   • Paid an expense with cash.
   • Paid on a previous account payable.

   July 11:

   • Bought supplies on account.
   • Common stock was issued for cash.
   • Paid on a previous account payable.
   • Received cash for payment of an account receivable.

   July 14:

   • Bought land for cash.
   • Bought supplies on account.
   • Paid an expense with cash.
   • Performed services for cash.

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   2. Prepare a trial balance at July 31, 2019. If an amount box does not require an entry, leave it blank.

   Chen Construction Company
   Trial Balance
   July 31, 2019
   Account	Debit	Credit
   Cash	$	$
   Accounts Receivable
   Supplies
   Land
   Accounts Payable
   Common Stock
   Retained Earnings
   	$	$

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