Assessment Task (1) (for chapter 2) Ex. (1) For the accounts listed below, indicate if the normal balance of the account is a debit or credit Normal Balance Dior Coedit Accounts 1 Service Revenue 2 Rent Expense 3 Accounts Receivable 4 Accounts Payable 5. Owner's Capital 6. Supplies 7. Insurance Expense 8. Owner's Drawings 10 Notes Payable Ex. (2)For each of the following accounts indicate (a) the type of account (Asset, Liability, Owner's Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance. Example a Asset account Debit increases, credit decreases c. Normal balance - debit O Cash 5. Service Revenue 1. Accounts Payable 2. Accounts Receivable 6. Insurance Expense 7. Notes Payable 3. Owner's Capital Ex. (21For each of the following accounts indicate (a) the type of account (Asset, Liability. Owner's Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance. a Asset account b. Debit increases, credit decreases C. Normal balance - debit 1. Accounts Payable 5. Service Revenue 2. Accounts Receivable 3. Owner's Capital 6. Insurance Expense 7. Nos Payable 8. Equipment 4. Owner's Drawings Solution (2) Ex. (3): Journalize the following business transactions in general journal form. Identify each transaction by number 1. The owner, Athena Lu, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship 2. Purchased $400 of supplies on credit 3. Purchased equipment for $8,000, paying $2,000 in cash and signed a 30-day. $6,000, note payable 4. Real estate commissions billed to clients amount to $4.000 5. Paid $700 in cash for the current month's rent 6. Paid $200 cash on account for supplies purchased in transaction 2. 7 is 3 Ex. (3): Journalize the following business transactions in general journal form. Identify each transaction by number 1. The owner, Athena Lu, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship 2. Purchased $400 of supplies on credit 3. Purchased equipment for $8,000, paying $2,000 in cash and signed a 30-day. $6,000, note payable 4. Real estate commissions biled to clients amount to $4.000 5. Paid $700 in cash for the current month's rent 6. Paid $200 cash on account for supplies purchased in transaction 2 7. Received a bill for $600 for advertising for the current month 8. Paid $2,200 cash for office salaries and wages. 9. Lu withdrew $1,500 from the business for living expenses 10. Received a check for $3.000 from a client in payment on account for commissions billed in transaction 4 Date Accounts Title Debit Credit Date Accounts Title Debit Credit O2111 : A Assessment Task.pdf Ex. (4): The transactions of the (A) company are recorded in the general journal below. Van ere to post the journal entries to T accounts. General Journal 7 is 4 " Sapital. 3. Equipment Accounts Payabile........... . . 4. Suppliers Accounts Payable ............................. 5. Prepaid insurance.......... Cash Cash Service Revenue..... ..... 7. Cash Accounts Receivable................. 8. Salaries and Wages Expense.......... Cash....................................... 9. Owner's Drawings...... .... Cash. ................................... Solution : DR Accounts Ledger Cash Owner's Capital % Land % DR Equipment % 7 is 7 Ex. (4): Prepare a corrected trial balance for (B) Company. All accounts should have a normal balance. B) COMPANY Trial Balance For the Quarter Ended 3/31/14 $14.000 Cash Accounts Receivable Prepaid Insurance Credit $ 23,000 Accounts Payable Unearned Service Revenue Notes Payable Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense 15,000 25.000 38.000 1.500 43,000 10.000 $116.500 $145.500 Solution: B) COMPANY Trial Balance For the Quarter Ended 3/31/14 Debt Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Notes Payabile Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Utsties Expense Rent Expense
