1) A company is established, the owners provide 30,000. This amount is immediately deposited into the companys banks checking account. *

A Debit: Cash / Banks (ASSET) Credit: Long term Debt (Liability) Amount = 30,000

B Debit: Cash / Banks (ASSET) Credit: Capital (Owners Equity) Amount = 30,000

C Debit: Capital (Owners Equity) Credit:Cash / Banks (ASSET) Amount = 30,000

D Debit: Cash / Banks (ASSET) Credit: Suppliers (Liability) Amount = 30,000

2. Costs for setting up the business for 800, were paid from the bank account *

A Debit: Banks (ASSET) Credit: Start up costs (ASSET) Amount = 800

B Debit:Banks (ASSET) Credit: Start up costs (EXPENSES) Amount = 800

C Debit: Start up costs (ASSET) Credit: Banks (ASSET) Amount = 800

D Debit: Start up costs (EXPENSES) Credit: Banks (ASSET) Amount = 800

3. A local bank granted us a long-term loan of 100.000 that was deposited in our bank account. *

A Debit: Cash (ASSET) Credit: Accounts Receivable (ASSET) Amount = 100,000

B Debit: Long- term bank loan (LIABILITY) Credit: Cash (ASSET) Amount = 100,000

C Debit: Cash (ASSET) Credit: Long- term bank loan (LIABILITY) Amount = 100,000

D Debit: Cash (ASSET) Credit: Inventory (ASSET) Amount = 100,000

4. Acquisition of Machinery valued at 22,000, amount due in 30 days. *

A Debit: Machinery (ASSET) Credit: Cash (ASSET) Amount = 22,000

B Debit: Accounts payable / Creditors (LIABILITY) Credit: Cash (ASSET) Amount = 22,000

C Debit: Cash (ASSET) Credit: Accounts payable / Creditors (LIABILITY) Amount =22,000

D Debit: Machinery (ASSET) Credit: Accounts Payable / Creditors (LIABILITY) Amount = 22,000

5. Sale of merchandise on open account (60 days): 5,000. *

A Debit: Sales of Merchandise (EXPENSE) Credit: Accounts Receivable (ASSET) Amount = 5,000

B Debit: Accounts Payable (Liability) Credit: Sales of Merchandise (REVENUE) Amount = 5,000

C Debit: Cash / Banks (ASSET) Credit: Sales of Merchandise (REVENUE) Amount = 5,000

D Debit: Accounts receivable (ASSET) Credit: Sales of Merchandise (REVENUE) Amount = 5,000

6. The company receives the invoice for the energy expenses of the actual period (300). The invoice will be paid in 30 days. *

A Debit: Enery (EXPENSE) Credit: Accounts Payable (LIABILITY) Amount = 300

B Debit: Energy (EXPENSE) Credit: Cash (ASSET) Amount = 300

C Debit: Accounts payable (LIABILITY) Credit: Cash (ASSET) Amount = 300

D Debit: Accounts Payable (LIABILITY)) Credit: Energy (EXPENSE) Amount = 300

7. Payment to suppliers of Machinery 22,000. (Transaction 4) *

A Debit: Machinery (EXPENSE) Credit: Cash (ASSET) Amount = 22,000

B Debit: Accounts Payable / Creditors (LIABILITY) Credit: Cash (ASSET) Amount = 22,000

C Debit: Accounts Payable / Creditors (LIABILITY)) Credit: Machinery (ASSET) Amount = 22,000

D Debit: Machinery (ASSET) Credit: Cash (ASSET) Amount = 22,000

8. One customer pays the amount due ( 5,000) by bank transfer *

A Debit: Accounts Receivable (ASSET) Credit: Banks (ASSET) Amount = 5,000

B Debit: Banks (ASSET) Credit: Accounts Receivable (ASSET) Amount = 5,000

C Debit: Banks (ASSET) Credit: Sales of merchandise (REVENUES) Amount = 5,000

D Debit: Accounts Receivable (ASSET) Credit: Accounts Payable (LIABILITIES) Amount = 5,000

9. The company receives the repair invoice of our machinery (200). This amount is paid from our bank account *

A Debit: Repaid and maintenance (EXPENSE) Credit: Banks (ASSET) Amount = 200

B Debit: Accounts payable (LIABILITY) Credit: Cash (ASSET) Amount = 200

C Debit: Accounts Payable (LIABILITY)) Credit: Repaid and maintenance (EXPENSE) Amount = 200

D Debit: Repaid and maintenance (EXPENSE) Credit: Accounts Payable (LIABILITY) Amount = 200

10. Purchase of merchandise (1.500) on credit (60 days): *

A Debit: Purchase of Merchandise (EXPENSE) Credit: Cash (ASSET) Amount = 1,500

B Debit: Accounts payable (LIABILITY) Credit: Cash / Banks (ASSET) Amount = 1,500

C Debit: Accounts Payable (LIABILITY)) Credit: Purchase of Merchandise (REVENUE) Amount = 1,500

D Debit: Purchase of Merchandise (EXPENSE Credit: Accounts Payable (LIABILITY) Amount = 1,500

11. Payment to the suppliers of the previous transaction by check *

A Debit: Purchase of Merchandise (EXPENSE) Credit: Banks (ASSET) Amount = 1,500

B Debit: Accounts payable (LIABILITY) Credit: Banks (ASSET) Amount = 1,500

C Debit: Accounts Payable (LIABILITY)) Credit: Purchase of Merchandise (REVENUE) Amount = 1,500

D Debit: Purchase of Merchandise (EXPENSE Credit: Accounts Payable (LIABILITY) Amount = 1,500

Regarding the trial balance of the exercise. The sum of the first two columns (SUMs Columns) value equals: *

A Amount =188,300 (Debit and Credit Column)

B Amount =135,300 (Debit and Credit Column)

C Amount =188,300 (Debit Column) and 135,300 (Credit Column)

D Amount =135,300 (Debit Column) and 188,300 (Credit Column)

E Amount = 175.000 (Debit and Credit Column)

F Amount = 175.300 (Debit and Credit Column)

Regarding the trial balance of the exercise. The sum of the last two columns (BALANCE Columns) value equals: *

A Amount =188,300 (Debit and Credit Column)

B Amount =135,300 (Debit and Credit Column)

C Amount =188,300 (Debit Column) and 135,300 (Credit Column)

D Amount =135,300 (Debit Column) and 188,300 (Credit Column)

E Amount = 125.000 (Debit and Credit Column)

F Amount = 125.300 (Debit and Credit Column)