Class Exercises-Week 4 1.Explain the accounting cycle. 2.Describe an account, its use, and its relationship to the ledger users. 3.Define debits and credits and explain their role in double-entry accounting QS 2-1Identifying accounts LO2 Identify the account as an asset, liability, or equity by entering the letter of the account type beside the account name. If the item is an equity account, indicate the type of equity account. .A = Asset .L = Liability .OE Owner's Capital (Equity) .W Owner's Withdrawals (Equity) R Revenues (Equity) .E Expenses (Equity) 1. Buildings 2. Building Repair Expense 3. Wages Expense 4. Wages Payable 5. Notes Receivable 6. Notes Payable 7. Prepaid Advertising 8. Advertising Expense 9. Advertising Payable 10. Uneamed Advertising 11. Advertising Revenue 12. Interest Income 13. Interest Expense 14. Interest Payable 15. Subscription Revenue 16. Uncamed Subscription Revenue 17. Prepaid Subscription Fees 18. Supplies 19. Supplies Expense 20. Rent Revenue 21. Unearned Rent Revenue 22. Prepaid Rent 23. Rent Payable 24. Service Revenue 25. Jessica Voong. Withdrawals n Jessica Vie, Capital 27. Salaries Expense 28. Salaries Payable 29. Furniture 30. Equipment Page 115 QS 2-2ldentifying normal balance as a debit or credit LO3 Indicate whether the normal balance of each of the QS 2-3Analyzing debit or credit by account LO3 Identify whether a debit or credit entry would be made to record the indicated change in each of the following accounts: a. To increase Notes Payable b. To decrease Accounts Receivable c. To increase Owner, Capital d. To decrease Unearned Revenue e. To decrease Prepaid Insurance f. To decrease Cash g. To increase Utilities Expense h. To increase Revenue i. To increase Store Equipment j. To increase Owner, Withdrawals k. To decrease Rent Payable 1. To decrease Prepaid Rent m. To increase Supplies n. To increase Supplies Expense o. To decrease Accounts Payable QS 2-5Developing a chart of accounts LO4 Using the chart of accounts numbering system, develop a chart of accounts that assigns an account number to each of the following accounts: a. Buildings b. Interest Revenue c. Matthew Lee, Withdrawals d. Matthew Lee, Capital e. Prepaid Insurance f. Interest Payable g. Accounts Receivable h. Salaries Expense i. Office Supplies j. Repair Services Revenue k. Interest Expense 1. Unearned Revenue m. Salaries Payable n. Furniture o. Interest Receivable 11:00 1 Class Exercises - Week 4.docx QS 2-3Analyzing debit or credit by account LO3 Identify whether a debit or credit entry would be made to record the indicated change in each of the following accounts: a. To increase Notes Payable b. To decrease Accounts Receivable c. To increase Owner, Capital d. To decrease Unearned Revenue e. To decrease Prepaid Insurance To decrease Cash f. g. To increase Utilities Expense h. To increase Revenue i. To increase Store Equipment j. To increase Owner, Withdrawals k. To decrease Rent Payable 1. To decrease Prepaid Rent m. To increase Supplies n. To increase Supplies Expense o. To decrease Accounts Payable QS 2-5Developing a chart of accounts LO4 Using the chart of accounts numbering system, develop a chart of accounts that assigns an account number to each of the following accounts: a. Buildings b. Interest Revenue c. Matthew Lee, Withdrawals d. Matthew Lee, Capital e. Prepaid Insurance f. Interest Payable g. Accounts Receivable h. Salaries Expense i. Office Supplies j. Repair Services Revenue k. Interest Expense 1. Unearned Revenue m. Salaries Payable n. Furniture o. Interest Receivable