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. Offi ce Supplies 4. Buildings 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 Salaries Expense 14. Selling Expense 15. Utilities Expense 16. Income Tax Expense.

Accounts Transactions Debited Credited Example: Purchased land and building in exchange for a three-year promissory note. 4, 6 9

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 offi ce 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 fi rst 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. _______ _______.

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