Introduction to Financial Accounting (ACCT 1010)

Answer all the following questions

Question 1 Explain the accounting cycle.

Question 2 What is the relationship of an account to the ledger and chart of accounts?

Question 3 What is the normal balance for assets, liabilities, revenue, expenses, withdrawals, and capital accounts?

Question 4 Does debit always mean increase and credit always mean decrease?

Question 5

Calculate the account balance for each of the following:

Account Receivables

1,000	650
400	920
920	1,500
3,000

Accounts Payable

250	250
900	1,800
650	1,400 650

Service Revenue

	13,000 2,500 810 3,500

Utilities Expense

610 520 390
275

Cash

3,900 17,800 14,500	2,400 3,900 21,800
340

Notes Payable

4,000 8,000	50,000

Question 6

Prepare journal entries for the following transactions that occurred during 2021:

May 1 Purchased equipment on account; $1,000.

2 Paid for the equipment purchased on May 1.

3 Purchased supplies for cash; $200.

4 Paid wages to employees; $4,000.

5 Performed services for a client and collected cash; $1,500.

6 Did work for a customer on credit; $5,000.

7 Collected the amount owing from the customer of May 6.