Accounts Used to Record Transactions Alist 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. Office Supplies 4. Buildings 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 Salaries Expense 14. Selling Expense 15. Utilities Expense 16. Income Tax Expense

Transcribed Image Text:

Transactions Example: Purchased land and building in exchange for a three-year promissory note. a. Issued capital stock for cash. b. Purchased ten automobiles; paid part in cash and signed a 60-day note for the balance. c. Purchased land in exchange for a note due in six months. d. Purchased office supplies; agreed to pay total bill by the 10th of the following month. e. Billed clients for services performed during the month and gave them until the 15th of the following month to pay. f. Received cash on account from clients for services rendered to them in past months. g. Paid employees salaries and wages earned during the month. h. Paid newspaper for company ads appearing during the month. i. Received monthly gas and electric bill from the utility company; payment is due anytime within the first ten days of the following month. j. Computed amount of taxes due based on the income of the period; amount will be paid in the following month. Accounts Debited Credited 4,6 9