Accounts Used to Record Transactions (Appendix)

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 fi rst 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. Offi ce Supplies 5. Automobiles 6. Land 7. Accounts Payable 8. Income Taxes 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.

Accounts Transactions Debited Credited Example: Purchased offi ce supplies for cash. 4 1

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 fl yers and signs from a printer, payment due in ten days. _______ _______ g. Paid for the fl yers 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. _______ _______.

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