Question 1: For the attached table, identify the type of account as an asset, liability, equity, revenue or expense 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 ra same for the decrease column. (33 points, 1 point per answer) Account Type Increase Asset Debit Decrease Credit Account Name 1 Cash 2 Inventory 3 Accounts Receivable 4 Accounts Payable 5 Owner Capital 6 Owner Withdrawal 7 Sales 8 Sales Discounts 9 Sales returns 10 COGS 11 Shipping expense Liability equity equity Credit credit Debit debit debit Credit 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, equity, revenue, or expense. (46 points, 1 point per answer) 1. On August 1, Debbie, the owner invested $40,500 cash into the company. Name of Accounts Affected: Type of Account: 2. On August 2 purchased $5,000 worth of merchandise terms 2/10, 1/30, FOB shipping point. 100 items of BAC at a cost of $50 each. T 2. On August 2 purchased $5,000 worth of merchandise terms 2/10,n/30, FOB shipping point. 100 items of BAC at a cost of $50 each. ACCT110 - Accounting Name of Accounts Affected: I Type of Account: 3. On August 3 returned 8 items of BAC at a cost of $50 each because they were defective and received a credit to our account. Name of Accounts Affected: Type of Account: 4. On August 5 paid the shipping cost of $100. Name of Accounts Affected: Type of Account: 5. On August 6 sold 10 BACs for a total selling price of $1000 that had a cost of $500 terms 2/10/, EOM. Name of Accounts Affected: Type of Account: 6. On August 8 customer returned two BACs worth $200 that had a cost of $100, they were damaged and not returned to inyentery, Name of Accounts Affected: Type of Account: On August 10 we paid our bill within the discount period, less the return. Name of Accounts Affected: Type of Account: hs ACCT110 - Accounting 8. On August 11 the customer paid their bill within the discount period less the return to us. Name of Accounts Affected: Type of Account: Question 3: Use the following information to create a Trial Balance for the company. As of August 31, the company, DEBS Services, had the following account balances: (29 points) Cash Accounts Receivable Inventory Accounts Payable Owner Capital Owner Withdrawals Sales Sales returns Sales discounts COGS Shipping expense $40,000 4,000 11,000 5,000 30,000 1,000 32,000 250 1,250 8,000 1500 Use the following table to complete the erial balance: DEBS Services Trial Balance August 31, XX Debits Account: Credits Use the following table to complete the trial balance: DEBS Services Trial Balance August 31, XXX Debits Account: Credits TOTAL
