Question 1:

For the attached table, identify the type of account as an asset, liability, or equity account. Then type debit or credit within the increase/decrease columns to signify whether a debit increases the account, or a credit increases the account. The same for the decrease column. (30 points, 1 point per answer)

	Account Name	Account Type	Increase	Decrease
1	Cash	assert	debit	Debit increased
2	Accounts Payable	liability	Debit	Debit Decrease
3	Prepaid Insurance	asset	debit	Credit increases
4	Rent Expense	equity	debit	Debit decrease
5	Unearned Revenue	liability	debit	Credit increases
6	Owner Capital	liability	credit	Credit increases
7	Fees Earned	equity	credit	Credit increases
8	Owner Withdrawal	Equity	debit	Debit increases
9	Equipment	asset	debit	Credit increases
10	Note Payable	liability	Debit	Debit Decrease

Question 2:

In a double entry accounting system, each transaction affects at least two different accounts. For the following transactions identify the two accounts and what type of account is each, asset, liability, or equity account. (40 points, 1 point per answer)

1. On August 1, Madison Harris, the owner invested $6,500 cash into the company.

Name of Accounts Affected:	Type of Account:
cash	asset

2. On August 2, the company paid $2,100 cash for an insurance policy covering the next 24 months.

Name of Accounts Affected:	Type of Account:

3. On August 5, the company purchased Office Supplies for $800 on credit.

Name of Accounts Affected:	Type of Account:

4. On August 7, the company received $2,500 cash for services rendered.

Name of Accounts Affected:	Type of Account:

5. On August 10, the company paid $800 on account for the supplies purchased on Aug 5.

Name of Accounts Affected:	Type of Account:

6. On August 15, the company billed Lee Services $1,500 for services provided on that date.

Name of Accounts Affected:	Type of Account:

7. On August 21, the owner withdrew $250 cash.

Name of Accounts Affected:	Type of Account:

8. On August 25, the company purchased equipment for $1,000 cash.

Name of Accounts Affected:	Type of Account:

9. On August 31, the company paid $375 cash for utilities.

Name of Accounts Affected:	Type of Account:

10. On August 31, the company paid $1,500 in advance for 3 months rent.

Name of Accounts Affected:	Type of Account:

Question 3:

The accounting equation is Assets = Liabilities + Owners Equity. For the following, determine the amount in question for each individual situation. (10 points, 2 points per answer)

	Assets =	Liabilities +	Owners Equity
1	???	$20,000	$45,000
2	$100,000	$34,000	???
3	$154,000	???	$40,000
4	$250,000	???	$78,000
5	???	$63,000	$49,000

Question 4:

Use the following information to create a Trial Balance for the company. As of October 31 the company, ABC Services, had the following account balances: (20 points)

Cash	$11,500
Accounts Receivable	14,000
Office Supplies	3,250
Land	46,000
Office Equipment	18,000
Accounts Payable	8,500
Owner Capital	84,000
Owner Withdrawals	2,000
Consulting Revenue	14,000
Rent Expense	3,500
Salaries Expense	7,000
Utility Expense	700
Miscellaneous Expense	550

Use the following table to complete the trial balance:

ABC Services
Trial Balance
As of October 31
Account:	Debits	Account:	Credits
TOTAL:		TOTAL: