Exercise #1- Account Classification (10 points / 1 point each)

Instructions: 1. In the first column indicate if the account is: Asset (A) Liability (L) Capital (C) Revenue (R) Expense (E)

2. In the second column indicate which is the normal balance of the account (side by which the account increases) if it is by Debit it will be placed (Dr.) and if it is by Credit it will be placed (Cr.).

Account Type of Account Increase Side (Normal Balance) Supplies Notes Receivable Fees Earned John Doe- Drawing Accounts Payable Salary Expense John Doe-Capital Accounts Receivable Equipment A Payable Notes

Exercise #2: Accounting Equation (2 points / 1 point each)

Total Assets and Total Liabilities of Coca Cola and PepsiCo are:

Coca-Cola PepsiCo Assets $31,327 $27,987 Liabilities $15,392 $14,415

Directions: Using the accounting equation determine the following amounts (Please submit calculations)

1. Owner's Equity for Coca-Cola

2. Owner's Equity for Pepsi Co.

Exercise #3: Accounting Equation (2 points / 1 point each)

Total Assets and Total Liabilities for eBay and Google are:

eBayGoogle Assets $7,991 $3,313 Liabilities $1,263 $384

Directions: Using the accounting equation determine the following amounts (Please submit calculations) 1. Owner's Equity for eBay

2. Owner's Equity for Google

Exercise #4: The transactions selected and completed by a proprietorship are described below. (16 points /2 points each) Instructions: For each of the transactions, make the corresponding Journal Entries using the following list of accounts: Cash, Supplies, Account Receivable, Accounts Payable, Owners Capital, Owners Drawing, Fees Earned, Expense Account

1. You deposited cash in an account with the name of the business 2. Received cash for services rendered 3. Billed clients for services rendered. 4. Payment for expenses incurred 5. Received cash from accounts receivable. 6. Made payment to accounts payable. (paid debt) 7. You made a purchase on credit. 8. Withdrew money from the business account for personal use.

Use the following table to make journal entries (Journal Entries- JE) Item Account Dr. Cr. JE #1

JE #2

JE #3

JE #4

JE #5

JE #6

JE #7

JE #8