Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The chart of accounts used by The Humpty Dumpty Company is listed below. You are to indicate the proper accounts to be debited and credited

image text in transcribed
image text in transcribed
The chart of accounts used by The Humpty Dumpty Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxesalong with the respective amounts. CHART OF ACCOUNTS 101 Cash 209 Unearned Service Revenue 112 Accounts Receivable 301 Owner's Capital 125 Supplies 306 Owner's Drawings 157 Equipment 400 Service Revenue 200 Notes Payable 610 Advertising Expense 201 Accounts Payable 729 Rent Expense Number(s) of account(s) and $ debited Number(s) of account(s) and $ credited a. M. Frugal invests $100,000 cash to start the business. b. Purchased three pieces of equipment for $260,000, paying $60,000 cash and signing a 5-year, 10% note for the remainder C. Purchased $10,000 supplies on credit. d Cash revenue amounted to $20,000. e. Paid $1,000 cash for radio advertising. f Paid $1,000 on account for supplies purchased in transaction 3. g Owner withdrew $2,000 from the business for personal expenses h. Paid $1,500 cash for rent for the current month. i. Received $7,000 cash advance from a customer for future copying. j. Billed a customer for $2,500 for photocopy work done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 25 - Change In Auditors

Authors: Kate Mooney

3rd Edition

0071719474, 9780071719476

More Books

Students also viewed these Accounting questions