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Brief Exercise 2-1Your answer is correct. For each of the following accounts, indicate the effects of a debit and a credit on the accounts and the normal balance of the account.Debit EffectCredit EffectNormal Balance1. Accounts Payable2. Advertising Expense3. Service Revenue4. Accounts Receivable5. Owner’s Capital6. Owner’s DrawingsIncreaseDecreaseDebitBrief Exercise 2-3Your answer is correct. Transactions for the George Lynch Company for the month of June are presented below.June 1George Lynch invests $5,000 cash in a small welding business of which he is the sole proprietor.2Purchases equipment on account for $2,100.3$800 cash is paid to landlord for June rent.12Sends a bill to M. Rodero for $300 for welding work performed on account.Journalize the transactions.(Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditres_EAT_135297June 1Cash5,000Ow ner's Capital5,000res_EAT_135297June 2Equipment2,100Accounts Payabl2,100res_EAT_135297June 3Rent Expense800cash800
res_EAT_135297June 12Accounts Receiv300Service Revenue300Don't show me this message again for the assignmentClick if you would like to Show Work for this question:Open Show WorkPost the transactions to T-accounts and determine each account’s ending balance. (Post entries in the order presented in the problem statement.)Cashres_EAT_1352975/122,400res_EAT_1352975/153,000EAT_1356591333Ending Bal.5,400Accounts Receivableres_EAT_1352975/54,100res_EAT_1352975/122,400EAT_1356591333Ending Bal.1,700Service Revenueres_EAT_1352974,100
5/5res_EAT_1352975/153,000EAT_1356591333Ending Bal.7,100Don't show me this message again for the assignmentBrief Exercise 2-10Your answer is correct. An inexperienced bookkeeper prepared the following trial balance.HUEWITT COMPANYTrial BalanceDecember 31, 2014DebitCreditCash$10,800Prepaid Insurance$3,500Accounts Payable3,000Unearned Service Revenue2,200Owner’s Capital9,000Owner’s Drawings4,500Service Revenue25,600Salaries and Wages Expense18,600Rent Expense2,400$31,600$48,000Prepare a correct trial balance, assuming all account balances are normal.HUEWITT COMPANYTrial BalanceDecember 31, 2014DebitCredit
Cash$10,800$Prepaid Insurance3,500Accounts Payabl3,000Unearned Service2,200Ow ner's Capital9,000Ow ner's Draw ing4500Service Revenue25,600Salaries and Wag18,600Rent Expense2,400 Total$39,800$39,800Don't show me this message again for the assignmentClick if you would like to Show Work for this question:Open Show WorkShow List of AccountsShow AnswerLink to Text