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The following list includes a series of accounts for Sanjeev Corporation, which has been operating for three years. These accounts are listed and numbered for

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The following list includes a series of accounts for Sanjeev Corporation, which has been operating for three years. These accounts are listed and numbered for identification Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. The first transaction is used as an example. Account No. Account Title Account No. Account Title Cash 10 Income Taxes Payable . Accounts Receivable 11 Common Stock 3 Supplies 12 Additional Paid-in Capital 4 Prepaid Expenses 13 Retained Earnings Equipment 14 Service Revenue 6 Patents Operating Expenses (wages, supplies) 7 Accounts Payable 16 Income Tax Expense 8 Note Payable Interest Expense 9 Wages Payable Debit Credit a 5 1.8 Transactions Example: Purchased equipment for use in the business paid one-third cash and signed a note payable for the balance b. Paid cash for salaries and wages eamed by employees this period 0 Paid cash on accounts payable for expenses incurred last period d Purchased supplies to be used later paid cash e. Performed services this period on credit + Collected cash on accounts receivable for services performed last period Debit Credit a 5 1,8 Transactions Example: Purchased equipment for use in the business; paid one-third cash and signed a note payable for the balance. b. Paid cash for salaries and wages earned by employees this period. c. Paid cash on accounts payable for expenses incurred last period. d. Purchased supplies to be used later paid cash. e. Performed services this period on credit. f. Collected cash on accounts receivable for services performed last period. 9. Issued stock to new investors. 1. Paid operating expenses incurred this period. i. Incurred operating expenses this period to be paid next period. 1. Purchased a patent (an intangible asset); paid cash. k Collected cash for services performed this period 1. Used some of the supplies on hand for operations, Paid three-fourths of the income tax expense incurred for the year, the balance will be paid next year Made a payment on the equipment note in (a): the payment was part principal and part interest expense On the last day of the current period, paid cash for an insurance policy covering the next two years m n 0

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