Prepare a horizontal and PE 2-88 Horizontal analysis Two income statements for Paragon Company to 2018 Paragon Company Income Statements For Years Ended December 31 2019 $1,416,000 $1,200,000 Fees earned 900,000 1,044,000 Operating expenses Net income $ 372,000 $300,000 Prepare a horizontal analysis of Paragon Company's income statements. OBJ. 1 EX 2-1 Chart of accounts The following accounts appeared in recent financial statements of Delta Air Lines: Accounts Payable Advanced Payments for Equipment Air Traffic Liability Aircraft Fuel (Expense) Aircraft Maintenance (Expense) Aircraft Rent (Expense) Cargo Revenue Cash Contract Carrier Arrangements (Expense) Flight Equipment Frequent Flyer (Obligations) Fuel Inventory Landing Fees (Expense) Parts and Supplies Passenger Commissions (Expense) Passenger Revenue Prepaid Expenses Taxes Payable Chapter 2 Analyzing Transactions Identify each account as either a balance sheet account or an income statement account For each balance sheet account, identify it as an asset, a liability, or owner's equity. For each income statement account, identify it as a revenue or an expense. EX 2-2 Chart of accounts OBJ. 1 Oak Interiors is owned and operated by Fred Biggs, an interior decorator. In the ledger of Oak Interiors, the first digit of the account number indicates its major account classifica- tion (1-assets, 2 liabilities, 3 Owner's equity, revenues, expenses. The second digit of the account number indicates the specific account within each of the preceding major account classifications. Match each account number with its most likely account in the list that follows. The account numbers are 11, 12, 13, 21, 31, 32, 41, 51, 52, and 53. Accounts Payable Accounts Receivable Fred Biggs, Drawing Land Fees Earned Fred Biggs, Capital Miscellaneous Expense Supplies Expense Wages Expense EX 2-3 Chart of accounts OBJ. 1 Outdoor Leadership School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows: Accounts Payable Miscellaneous Expense Accounts Receivable Prepaid Insurance Cash Rent Expense Equipment Supplies Fees Earned Supplies Expense Lorri Ross, Capital Unearned Rent Lorri Ross, Drawing Wages Expense List the accounts in the order in which they should appear in the ledger of Outdoor Leader ship School and assign account numbers. Each account number is to have two digits: the first digit is to indicate the major classification ( for assets, for example), and the second digit is to identify the specific account within each major classification (11 for Cash, for example) EX 2-4 Rules of debit and credit 06. 1,2 The following table summarizes the rules of debit and credit. For each of the items (a) through (I), indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Liability Debit Owner's equity: Capital Credit Credit Drawing Income statement accounts: Revenue ( DK) Credit Expense Credit Debit el EX 2-5 Normal entries for accounts OBJ. 2 During the month, Midwest Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only. (b) credit entries only, or both debit and credit entries. 1. Accounts Payable 5. Insurance Expense 2. Accounts Receivable 6. Jerri Holt, Drawing 3. Cash 7. Utilities Expense 4. Fees Earned 92 aset, liability, Chapter 2 Analyzing Transactions is a debita che ers Accounts Payable h Accounts Receivable c. Ashley Griffin, Capital d. Ashley Griffin, Drawing e. Cash EX2-6 Normal balances of account y each other of Dispatch Series coas asset, labilis or expansinechce whether the balance is ack I Fees Earned e Office Equipment h. Rent Expense 1. Supplies Wages Expense 08 Payne, Dan EX 2-7 Transactions Concrete Consulting Co has the following accounts in its leder: Cash; Accounts Re Supplies Office Equipment Accounts Payable, Jason Payne, Capital: Jason Payne, Fees Earned: Rent Expense Athertising Expense; Utilities Epenses Miscellaneous Journalize the following selected transactions for October 2019 in a two-column Journal entry explanations may be omitted. Oct. 1. Paid rent for the month, $3,600 3. Paid advertising expense, $1,200. 5. Paid cash for supplies, $750. 6. Purchased office equipment on account, $8,000. 10. Received cash from customers on account, $14,800. 15. Paid creditors on account, $7.110. 27. Pald cash for miscellaneous expenses, $400. 30. Paid telephone bill (utility expense) for the month, $250. 31. Fees earned and billed to customers for the month, $33,100. 31. Paid electricity bill (utility expense) for the month, $1,050. 31. Withdrew cash for personal use, $2,500. OB21 522 EX 2-8 Journalizing and posting On September 18, 2019, Afton Company purchased $2.475 of supplies on account Afton Company's chart of accounts, the supplies account is No. 15, and the acco payable account is No. 21. 7 of Afton Company Journalize the September 18, 2019, transaction on page column journal. Include an explanation of the entry. b. Prepare a four-column account for Supplies. Enter a debit balance of $500 September 1, 2019. Place a check mark in the Posting Reference column c. Prepare a four-column account for Accounts Payable. Enter a credit balance of as of September 1, 2019. Place a check mark in the Posting Reference d. Post the September 18, 2019, transaction to the accounts. e - Do the rules of debit and credit apply to all companies? it balance of $840 as a credit balance of $10.90 8 Reference colum EX 2-9 Transactions and T accounts The following selected transactions were completed during August of the cu 1. Billed customers for fees camed, 573,900. 2. Purchased supplies on account, $1.960. 3. Received cash from customers on account 4. Paid creditors on ORI ring August of the current