Accounts Used to Record Transactions A list of accounts, with an identifying number for each, is provided. Following the list of accounts is a series of transactions entered into by a company during its first year of operations.

Required For each transaction, indicate the account or accounts that should be debited and credited.

1. Cash 2. Accounts Receivable 3. Prepaid Insurance 4. Office Supplies 5. Automobiles 6. Land 7. Accounts Payable 8. Income Tax Payable 9. Notes Payable 10. Capital Stock 11. Retained Earnings 12. Service Revenue 13. Wage and Salary Expense 14. Utilities Expense 15. Income Tax Expense

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Transactions Example: Purchased office supplies for cash. a. Issued capital stock for cash. b. Purchased an automobile and signed a 60-day note for the total amount. c. Acquired land in exchange for capital stock. d. Received cash from clients for services performed during the month. e. Paid employees salaries and wages earned during the month. f. Purchased flyers and signs from a printer, payment due in ten days. g. Paid for the flyers and signs purchased in (f). h. Received monthly telephone bill; payment is due within ten days of receipt. i. Paid for a six-month liability insurance policy. j. Paid monthly telephone bill. k. Computed amount of taxes due based on the income of the period and paid the amount. Accounts Debited Credited 4