Obj. 2 BE 2-1 Rules of debit and credit and normal balances State for each account whether it is likely to have (a) debit entries only, (b) credit entries only or (c) both debit and credit entries. Also, indicate its normal balance. 1. Accounts Payable 2. Cash 3. Dividends 4. Miscellaneous Expense 5. Insurance Expense 6. Fees Earned BE 2-2 Journal entry for asset purchase Prepare a journal entry for the purchase of office supplies on November 2 for $1,600, paying $500 cash and the remainder on account. Obj. 2 BE 2-3 Journal entry for fees earned Prepare a journal entry on August 13 for cash received for services rendered, $9,000. Obj. 3 BE 2-4 Journal entry for dividends Prepare a journal entry on June 30 for dividends of $11,500. Obj. 3 BE 2-5 Missing amount from an account On August 1, the supplies account balance was $1,025. During August, supplies of $3,110 were purchased, and $1,324 of supplies were on hand as of August 31. Determine supplies expense Obj. 3 EX 2-7 Transactions Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Obj. 2 Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. Oct. 1. Paid rent for the month, $2,500 4. Paid advertising expense, $1,000. 5. Paid cash for supplies, $1,800. 6. Purchased office equipment on account, $11,500. 12. Received cash from customers on account, $7,500. 20. Paid creditor on account, $2,700. 27. Paid cash for miscellaneous expenses, $700. 30. Paid telephone bill for the month, $475. 31. Fees earned and billed to customers for the month, $42,400. 31. Paid electricity bill for the month, $900 31. Paid dividends, $1,500. UB]. 1,2, 3,4 Y, which completed the following trans PR 2-2B Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realt actions during the month: Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange a. for common stock, $17,500. b. Purchased supplies on account, $2,300. c. Earned sales commissions, receiving cash, $13,300. d. Paid rent on office and equipment for the month, $3,000. e. Paid creditor on account, $1,150. f. Paid dividends, $1,800. g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400. h. Paid office salaries, $2,800. i. Determined that the cost of supplies used was $1,050. Instructions 1. Journalize entries for transactions (a) through (), using the following account titles: Cash, Sup- plies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. J explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these a placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August
