CHAPTER 13 EXERCISES-SERIES B-WORKING PAPERS Matching debit and credit terminology with accounts Exercise 13-1B LO 13-1 Required Complete the following table by indicating whether a debit or credit is used to increase or decrease the balance of the following accounts. The appropriate debit/credit terminology has been identified for the first account as an example. Used to Decrease This Account Used to Increase This Account Account Titles Credit Debit Insurance Expense Rent Expense Prepaid Rent Interest Revenue Accounts Receivable Accounts Payable Common Stock Land Unearned Revenue Service Revenue Retained Earnings Used to Decrease This Account Used to Increase Account This Account Category Insurance Expense Rent Expense Prepaid Rent Interest Revenue Accounts Receivable Accounts Payable Common Stock Land Unearned Revenue Service Revenue Retained Earnings otected View) Exercise 13-3B Matching debit and credit terminology with account titles LO 13-1 Required Indicate whether each of the following accounts normally has a debit balance or a credit balance: a. Unearned Revenue . Common Stock b. Service Revenue h. Prepaid Rent c. Dividends I Supplies J.Accounts Payable d. Land e. Accounts Receivable k. Interest Revenue f. Cash L Rent Expense Account Normal Balance a. Unearned Revenue b.Service Revenue c. Dividends d. Land e. Accounts Receivable f. Cash g. Common Stock h.Prepaid Rent i. Supplies j. Accounts Payable k. Interest Reven ue I.Rent Expense Chapter 13 Workpaper Protected View Saved Help View ceferences Mailings Review Enable Editing an contain viruses. Unless you need to edit, it's safer to stay in Protected View. Requlred In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions: (1) Provided services for cash. (2) Recognized accrued salaries at the end of the period. (3) Provided services on account (4) Paid cash for operating expenses (5) Acquired cash from the issue of common stock (6) Purchased supplies on account. (7) Purchased land for cash. (8) Paid a cash dividend to the stockholders. Account Cred ited Account Debited Event 1. Provided services for cash. 2. Recognized accrued salaries at the end of the period. 3. Provided services on count. 4. Paid cash for operating expenses. 5. Acquired cash from the issue of common stock. 6, Purchased supplies on account. 7. Purchased land for cash. 8. Paid a cash dividend to the stockholders. cted View b. Use a horizontal statements model to show how each event affects the balance sheet, income sheet, and statement of cash flows. Indicate whether the event increases (+), decreases (-), or does not affect (NA) each element of the financial statements. Also, in the Statement of Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is recorded as an example. Statement Income Statement Balance Sheet of Cash Net Inc. Exp. Stk. Equity Flows Rev. Liab. + Assets +OA NA NA NA NA + + =Net Inc. Cash Flow Exp NA =Liab. Equity Rev. No. Assets OA + NA + 1. + 2. 3. 4. 5. 6 7. 8 w) ses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing D 13-1 Exercise 13-5B Debit/credit terminology Required For each of the following independent events, identify the account that would be debited and the ac- count that would be credited. The accounts for the first event are identified as an example. Event Account Debited Account Credited Cash Unearned Revenue a. Received cash for services to be performed in the future. b. Purchased supplies on account. c. Paid cash in advance for one year's rent. d. Received cash by issuing common stock. e. Provided services on account. f. Paid accounts payable. g Paid salaries payable. h. Recognized revenue for services completed: previously collected the cash in Event a. i. Paid cash for operating expenses Paid salaries expense. k. Received cash in payment of accounts receivable. 1. Recognized expense for prepaid rent that had been used up by the end of the accounting period. m. Paid cash dividends to the stockholders. Event Number Account Debited Account Credited Cash Unearned Revenue . b. C. d. . f. g. h. 1dentifing traasaction ope, its efect on the accouating equation, and whether the cffect is recorded with a debit or credit Exerclse 13-68 LO 13-1 Required Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset ex- change (AE), or claims exchange (CE). Also explain how each event affects the accounting equation by placing a (+) for increase, (-) for decrease, and NA for not affected under each of the components of the accounting equation. Finally, indicate whether the effect requires a debit - event is recorded as an example. credit entry. The first Stockholders Equity Retalned Earnings Common Stock of Event Liabilities Event Assets + NA + Credit +Debit NA AS a. Provided services for cash. b. Received cash in payment of accounts receivable. c. Recognized revenue for services completed: cash collected previously d. Purchased land by paying cash e. Purchased supplies on account f. Paid salaries payable. g. Recognized expense for prepaid rent that had been used up by the end of the accounting period. h. Incurred other operating expenses on account. i. Recognized expense for supplies used during the period. j Received cash for services to be performed in the future k. Paid a cash dividend to the stockholders L Paid cash in advance for one year's rent. m. Provided services on account. Stockholders' Equity of Event Common Retained Event Liabilities Stock Earnings No. Assets NA NA Credit AS +Debit . b. C. d. e. f. ew L Exercise 13-7B Identifying increases and decreases in T-accounts LO 13-1 Required For each of the following Taccounts, indicate the side of the account that should be used to record an increase or decrease in the financial statement element: Assets Llabilities + Stockholders' Equity Debit Credit Debit Credit Debit Credit + Stockholders' Equity Assets Liabilities Credit Debit Debit Credit Debit Credit