1.The bank agreed to allow the business a line of credit, the line has access to $120,000 (no money yet borrowed).

Debit:

Credit:

2.Received a $15,000 advance, in cash, for tough guy classes being taught in the future.

Debit:

Credit:

3. Prepaid three months of advertising in the local papers and on radio with cash, $2,700.

Debit:

Credit:

4.Completed the first week of tough guy instruction and billed clients for $3,750.

Debit:

Credit:

5.Purchased office supplies for cash, $3,500.

Debit:

Credit:

6.Received $3,750 of cash from customers on account.

Debit:

Credit:

7.For this business event there are three necessary accounts, please list the debit first, then list the credit with the largest dollar value next or second, and finally, list the credit with the smallest dollar value last or third.

Purchased an office building for $200,000, paid 10% in cash with the remainder paid with a mortgage note from the bank.

Debit:

Credit:

Credit:

8. AT THE END OF THE FIRST MONTH:

Received a utility bill and an interest bill from the bank, $2,000.

Debit:

Credit:

9.AT THE END OF THE FIRST MONTH:

Used supplies of $1,500 during the period.

Debit:

Credit:

10.AT THE END OF THE FIRST MONTH:

Used a months worth of the tough guy training material and advertising, $5,900 (5,000+900).

Debit:

Credit:

Instructions For each of the business events below about the John Wayne Tough Guy School, identify the appropriate account types to debit and credit (as requested). If a business event does not require an accounting transaction, use CD (No transaction recorded) for both the requested debit and credit. ACCOUNT TYPE AB Asset AC Liability AD Equity - Owner Contributions AE Equity - Owner Withdrawal BC Equity - Revenue BD Equity - Expense CD No transaction recorded Complete each transaction by listing only the capital letters assigned to each accounting element (e.g., AB = Asset)