Recognition of normal balances The following items...

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1. Recognition of normal balances Asset Liability revenue Normal balances debit credit credit Amounts paid to a mall for rent. The albums, tapes, and CDs held for sale to customers. asset A long-term loan owed to Citizens Bank. liability Promotional costs to publicize a concert. Daily sales of merchandise sold. revenue Amounts due from customers. asset Land held as an investment asset A new fax machine purchased for office use. asset Amounts to be paid in 10 days to suppliers liability 1. Recognition of normal balances The following items appeared in the accounting records of Triguero's, a retail also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company's vie indicate normal account balance of each item.
expenses debit expense expense l music store that ewpoint. I will
date journal entries amount (debit) 1-May cash $25,000 Land $15,000 Owner's equity (Owner invested cash and land in the company) Jennifer Royall 5-May Accounts receivable- Jason Rachford Service revenue (Provided services to a client on account) 9-May Salaries expense Cash (paid $1250 of salaries to an employee) 14-May Fixed asset-computer Accounts payable ( acquired a new computer for $3,200, on account) 20-May Cash $800 Accounts receivable-Jason Rachford (collected $800 from Jason Ratchford for services provided on May5) 24-May Cash $2,500 Short term loan (borrowed $2,500 from BestBanc by securing a six-month loan) 2. Basic journal entries The following April transactions pertain to the Jennifer Royall Company:
amount (credit) $1,000 $1,250 $3,200
Priston Company Balance Sheet 31-Dec-14 Assets: Current asset: 45000 cash 21000 Accounts receivable 24000 Fixed asset: 61000 Building 40000 Land 21000 Total asset 106000 Liability and owners Equity: Liability: 41000 Accounts payable 11000 Loan payable 30000 Owners's equity: 65000 J. Preston Capital 65000 Total liability and owners equity 106000 Note: accouunts payable is derived from deducting loan payable and capital from total asset which equals total 3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 2014
l liability and ower's equity.
Date Transaction cash 1-Nov Simmons invested $32,000 into the business for $32,000 in common stock $32,000 2 Paid $5,000 to acquire a used minivan -5000 3 Purchased $1,800 of office furniture on account 4 Performed $2,100 of consulting services on account 5 Paid $300 of repair expenses -300 6

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