PROBLEM #1 - 20 points Match the letter corresponding to one of the basic elements of accounting to each of the accounts below: A = Asset L = Liability OE = Owner's Equity 6. Cash 7. Insurance Expense 1. Rent Expense 2. Office Equipment 3. Accounts Payable 4. Owner's Capital 8. Owner's Withdrawals 9. Service Revenue 5. Accounts Receivable 10. Prepaid Insurance PROBLEM #2 - 20 points For the accounts listed below, indicate if the normal balance of the account is a debit (DR) or a credit (CR). 1. Service Revenue 6. Office Supplies 2. Rent Expense 7. Insurance Expense 3. Accounts Receivable 8. Owner's Capital 4. Accounts Payable 9. Office Building 5. Owner's Withdrawals .10. Notes Payable PROBLEM #3 - 30 points Joumalize the following transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. 1. Mike Cline invested $35,000 cash in his business. 2. Purchased $400 of office supplies on account. 3. Purchased office equipment for $6,000, paid $2,000 in cash and signed a 30-day note for the remainder. 4. Real estate commissions billed to clients in the amount of $4,000. 5. Paid $700 in cash for current month's rent. 6. Paid $200 of amount owed for the office supplies purchased in transaction (2). 7. Received a bill for $600 advertising for the current month. 8. Paid $2,200 cash for office salaries. 9. Mr. Cline withdrew $1,200 cash for personal use. 10. Received a check for $3,000 from a client in payment of account for commissions billed. I General Journal Page 1 Credit Debit Date Description PROBLEM #4 - 30 points The transactions of Matile Delivery Company are recorded in the general journal below. You are to post the entries to T accounts, then prepare a trial balance in good order and form with complete headings. General Journal Description Page 1 Credit Debit Date 20XX April 15,000 1 Cash Matile, Capital 15,000 30,000 4 Delivery Trucks Cash 10,000 20,000 Notes Payable 1,000 8 Rent Expense Cash 1,000 15 Prepaid Insurance I 400 Cash 400 2,500 18 Cash Delivery Revenue 2,500 500 20 Salaries Expense Cash 500 100 25 Utilities Expense Accounts Payable 100 500 20 Salaries Expense Cash 500 100 25 Utilities Expense Accounts Payable 100 800 30 Matile, Withdrawals Cash 800 I 2,000 30 Accounts Receivable Delivery Revenue 2.000 Trial Balance