Question 1

Under a double-entry system show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account. $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Debit or Credit
1. An increase in Salaries and Wages Expense.$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
2. Adecrease in Accounts Payable.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
3. An increase in Prepaid Insurance.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
4. An increase in Owner's Capital.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
5. A decrease in Supplies.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
6. An increase in Owner's Drawings.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
7. An increase in Service Revenue.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
8. A decrease in Accounts Receivable.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
9. An increase in Rent Expense.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$
10. A decrease in Equipment.$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\underline{\quad\quad\quad}$

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Question 2

The following transactions took place for Tanaka company:
1. Purchased equipment on account for $9800.
2. Billed customers $5600 for services performed.
3. Made payment of $2400 on account for equipment purchased earlier in month.
4. Collected $3900 on customer accounts.
1. What is the balance in Accounts Payable at June 30 2016?
2. What is the balance in Accounts Receivable at June 30 2016?

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Question 3

The transactions of the Litehouse Realty are recorded in the general journal below. You are to post the journal entries to T-accounts.

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Question 4

Eight transactions are recorded in the following T-accounts:  Indicate for each debit and each credit: (a) whether an asset liability capital drawing revenue or expense account was affected and (b) whether the account was increased (+) or (-) decreased. Answers should be presented in the following chart form:

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Question 5

Journalize the following transactions for Tanaka Company for June 2016 the company's first month of operations. You may omit explanations for the transactions.
1. Purchased equipment on account for $9800.
2. Billed customers $5600 for services performed.
3. Made payment of $2400 on account for equipment purchased earlier in month.
4. Collected $3900 on customer accounts.

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Question 6

Transactions for Joan Jett Company for the month of October are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.
1. Invested $42000 cash in the business.
2. Purchased land costing $28000 for cash.
3. Purchased equipment costing $18000 for $4000 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $1200 for a one-year insurance policy.
6. Received $3500 cash for services performed.
7. Received $4000 for services previously performed on account.
8. Paid wages to employees for $2800.
9. Petty withdrew $2300 cash from the business.

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Question 7

Identify the accounts to be debited and credited for each of the following transactions.
1. The owner O. Gulag invested $8000 cash in the business.
2. Purchased supplies on account for $1000.
3. Billed customers $2000 for services performed.
4. Paid salaries of $1200.

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Question 8

For the accounts listed below indicate if the normal balance of the account is a debit or credit. $\begin{array}{lrr}
&\text {Normal Balance}\
 \underline{\text { Accounts }}& \underline{\text {  Debit or Credit}}\
 \text {  1. Service Revenue} &\underline{\quad\quad\quad\quad}\
 \text {2. Rent Expense  } &\underline{\quad\quad\quad\quad}\
 \text { 3. Accounts Receivable } &\underline{\quad\quad\quad\quad}\
 \text {  4. Accounts Payable} &\underline{\quad\quad\quad\quad}\
 \text { 5. Owner's Capital } &\underline{\quad\quad\quad\quad}\
 \text {6. Supplies  } &\underline{\quad\quad\quad\quad}\
 \text { 7. Insurance Expense } &\underline{\quad\quad\quad\quad}\
 \text {8. Owner's Drawings  } &\underline{\quad\quad\quad\quad}\ 
\text { 9. Buildings } &\underline{\quad\quad\quad\quad}\
 \text {  10. Notes Payable} &\underline{\quad\quad\quad\quad}\
\end{array}$

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Question 9

Sigur Ros Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows: $$\begin{array} { l l } 
\text { Accounts Payable } & \text { Prepaid Insurance } \
\text { Accounts Receivable } & \text { Prepaid Rent } \
\text { Accumulated Depreciation - Equip. } & \text { Rent Expense } \
\text { Cash } & \text { Salaries and Wages Expense } \
\text { Depreciation Expense } & \text { Salaries and Wages Payable } \
\text { Equipment } & \text { Service Revenue } \
\text { Insurance Expense } & \text { Supplies } \
\text { Owner's Capital } & \text { Supplies Expense } \
\text { Owner's Drawings } &
\end{array}$$ Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers. $\begin{aligned}
1 - 199 & \text { Assets } \
200 - 299 & \text { Liabilities } \
300 - 399 & \text { Owner's Equity } \
400 - 499 & \text { Revenues } \
500 - 599 & \text { Expenses }
\end{aligned}$

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Question 10

Prepare a corrected trial balance for Howard Company. All accounts should have a normal balance. $\begin{array}{c}
\text { HOWARD COMPANY}\
\text { Trial Balance}\
\text { For the Quarter Ended 3/31/16}\\
\begin{array}{lrr}
&\text { Debit}&\text { Credit}\
\text { Cash } & \$ 13,000 &  \
\text { Accounts Receivable } & &\$ 25,000 \
\text { Prepaid Insurance } & 2,500 & \
\text { Equipment } & 62,000 & \
\text { Accounts Payable } & &16,000  \
\text { Unearned Service Revenue } &12,000  & \
\text { Notes Payable } & &   25,000\
\text { Owner's Capital } & &40,000 \
\text { Owner's Drawings } &  &1,500  \
\text { Service Revenue } & &40,000\
\text { Salaries and Wages Expense } &14,000 & \
\text { Utilities Expense } & 5,000 & \
\text { Rent Expense } &\underline{10,000} \
 \underline{\underline{\$ 118,500}} & \underline{\underline{\$ 147,500}}
\end{array}\end{array}$

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Question 11

For each of the following accounts indicate (a) the type of account (Asset Liability Owner's Equity Revenue Expense) (b) the debit and credit effects and (c) the normal account balance. $\begin{array}{ll}
  \text {0. Cash   } & \text {a. Asset account  } \
& \text { b. Debit increases, credit decreases } \
& \text { c. Normal balance - debit } \
\end{array}$

$\begin{array}{llcc}
&\text { Accounts }\
\hline  \text { 1. Accounts Payable } &&  \text { 5. Service Revenue } \
  \text { 2. Accounts Receivable } &&  \text { 6. Insurance Expense } \
  \text { 3. Owner's Capital } & & \text {  7. Notes Payable} \
  \text {4. Owner's Drawings  } &&  \text { 8. Equipment } \
\end{array}$

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Question 12

Prepare journal entries for each of the following transactions.
1. Performed services for customers on account $8400.
2. Purchased $20000 of equipment on account.
3. Received $3800 from customers in transaction 1.
4. The owner J. Dean withdrew $2900 cash for personal use.

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Question 13

Match the basic step in the recording process described by each of the following statements.

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Question 14

During an accounting period a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only (b) credit entries only or (c) both debit and credit entries.

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Question 15

For each of the following accounts indicate the effects of (a) a debit and (b) the normal account balance.
 1. Notes Payable
 2. Prepaid Insurance
 3. Salaries and Wages Expense
 4. Service Revenue
 5. Equipment
 6. Owner's Capital

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Question 16

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
1. The owner Mai Li invests $40000 in cash in starting a real estate office operating as a sole proprietorship.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $9000 paying $4000 in cash and signed a 30-day $5000 note payable.
4. Real estate commissions billed to clients amount to $4000.
5. Paid $800 in cash for the current month's rent.
6. Paid $200 cash on account for supplies purchased in transaction 2.
7. Received a bill for $600 for advertising for the current month.
8. Paid $2500 cash for office salaries and wages.
9. Li withdrew $1800 from the business for living expenses.
10. Received a check for $2500 from a client in payment on account for commissions billed in transaction 4.

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Question 17

Identify the impact on the accounting equation of the following transactions.
1. Purchased 36-month insurance policy for cash.
2. Purchased supplies on account.
3. Received utility bill to be paid at later date.
4. Paid utility bill previously accrued.

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Question 18

For each transaction given enter in the tabulation given below a "D" for debit and a "C" for credit to reflect the increases and decreases of the assets liabilities and owner's equity accounts. In some cases there may be a "D" and a "C" in the same box.
Transactions:
1. Owner invests cash in the business.
2. Pays insurance in advance for six months.
3. Pays secretary's salary.
4. Purchases office supplies on account.
5. Pays electricity bill.
6. Borrows money from local bank.
7. Makes payment on account.
8. Receives cash due from customers.
9. Provides services on account.
10. Owner withdraws assets from the business.

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Question 19

The chart of accounts used by Notwist Copy 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 boxes.

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Question 20

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31 2016. 
$\begin{array} { l r l r } 
\text { Accounts Payable } & \$ 1,100 & \text { Rent Expense } & \$ 500 \
\text { Accounts Receivable } & 1,700 & \text { Service Revenue } & 3,000 \
\text { Cash } & 1,400 & \text { Supplies } & 200 \
\text { Owner's Capital } & 2,000 & \text { Salaries and Wages Expense } & 1,300 \
\text { Owner's Drawings } & 1,000 & &
\end{array}$

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Quiz 2: The Recording Process

The transactions of the Litehouse Realty are recorded in the general journal below. You are to post the journal entries to T-accounts.

Identify the accounts to be debited and credited for each of the following transactions. 1. The owner O. Gulag invested $8000 cash in the business. 2. Purchased supplies on account for $1000. 3. Billed customers $2000 for services performed. 4. Paid salaries of $1200.

Prepare journal entries for each of the following transactions. 1. Performed services for customers on account $8400. 2. Purchased $20000 of equipment on account. 3. Received $3800 from customers in transaction 1. 4. The owner J. Dean withdrew $2900 cash for personal use.

Match the basic step in the recording process described by each of the following statements.

During an accounting period a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only (b) credit entries only or (c) both debit and credit entries.

For each of the following accounts indicate the effects of (a) a debit and (b) the normal account balance. 1. Notes Payable 2. Prepaid Insurance 3. Salaries and Wages Expense 4. Service Revenue 5. Equipment 6. Owner's Capital

Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2. Purchased supplies on account. 3. Received utility bill to be paid at later date. 4. Paid utility bill previously accrued.

The chart of accounts used by Notwist Copy 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 boxes.