Exercise 3-2A Debit and Credit Analysis

Complete the following statements using either "debit" or "credit":

a. The cash account is increased with a	_________________
b. The owner's capital account is increased with a	_________________
c. The delivery equipment account is increased with a	_________________
d. The cash account is decreased with a	_________________
e. The liability account Accounts Payable is increased with a	_________________
f. The revenue account Delivery Fees is increased with a	_________________
g. The asset account Accounts Receivable is increased with a	_________________
h. The rent expense account is increased with a	_________________
i. The owner's drawing account is increased with a	_________________

2.

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Exercise 3-5A Transaction Analysis

Linda Kipp started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.

Invested cash in the business, $5,000.

Bought equipment for cash, $700.

Bought equipment on account, $600.

Paid cash on account for equipment purchased in transaction (c), $400.

Withdrew cash for personal use, $900.

Cash
_________________	_________________	_________________	_________________
		_________________	_________________
		_________________	_________________

Equipment
_________________	_________________
_________________	_________________

Accounts Payable
_________________	_________________	_________________	_________________

Linda Kipp, Capital
		_________________	_________________

Linda Kipp, Drawing
_________________	_________________

3.

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Exercise 3-6A Foot and Balance T Accounts

Linda Kipp started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Each T account is labeled with the title of the account affected. Place the transaction letter and the dollar amount on the debit or credit side. Foot and balance the T accounts prepared.

Invested cash in the business, $5,000.

Bought equipment for cash, $700.

Bought equipment on account, $600.

Paid cash on account for equipment purchased in transaction (c), $400.

Withdrew cash for personal use, $900.

Cash
_________________	_________________	_________________	_________________
		_________________	_________________
		_________________	_________________
			_________________
Bal.	_________________

Equipment
_________________	_________________
_________________	_________________
Bal.	_________________

Accounts Payable
_________________	_________________	_________________	_________________
		Bal.	_________________

Linda Kipp, Capital
		_________________	_________________

Linda Kipp, Drawing
_________________	_________________

4.

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Exercise 3-9A Trial Balance

The following accounts have normal balances.

Prepare a trial balance for Kenny's Lawn Service as of September 30, 20--. List the accounts in the order of Assets, Liabilities, Owner's equity, Revenue, and Expenses. If an amount box does not require an entry, leave it blank.

Kenny's Lawn Service

Trial Balance

September 30, 20--

Account

Debit Balance

Credit Balance

5.

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Exercise 3-10A Income Statement

Provided below is a trial balance for Juanita's Delivery Service.

Prepare an income statement for Juanita's Delivery Service for the month ended September 30, 20--.

Juanita's Delivery Service

Income Statement

For Month Ended September 30, 20--

$

$

Total expenses

$