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Unformatted text preview: Page 1 of 10 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview Score: 8 out of 8 points (100%) 1. award: 1 out of 1 point Exercise 2-1 Identifying type and normal balances of accounts L.O. C3, C5 For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) select debit ( Dr. ) or credit ( Cr. ) to identify the kind of entry that would increase the account balance, and (3) identify the normal balance of the account. Account Type of Account Increase (Dr. or Cr.) Normal Balance a. Accounts Payable Liability Credit Credit b. Postage Expense Expense Debit Debit c. Prepaid Insurance Asset Debit Debit d. Land Asset Debit Debit e. Owner Capital Equity Credit Credit f. Accounts Receivable Asset Debit Debit g. Owner Withdrawals Equity Debit Debit h. Cash Asset Debit Debit i. Equipment Asset Debit Debit j. Fees Earned Revenue Credit Credit k. Wages Expense Expense Debit Debit l. Unearned Revenue Liability Credit Credit Exercise 2-1 Identifying type and normal balances of accounts L.O. C3, C5 For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) select debit ( Dr. ) or credit ( Cr. ) to identify the kind of entry that would increase the account balance, and (3) identify the normal balance of the account. Account Type of Account Increase (Dr. or Cr.) Normal Balance a. Accounts Payable Liability Credit Credit b. Postage Expense Expense Debit Debit c. Prepaid Insurance Asset Debit Debit d. Land Asset Debit Debit e. Owner Capital Equity Credit Credit f. Accounts Receivable Asset Debit Debit g. Owner Withdrawals Equity Debit Debit h. Cash Asset Debit Debit i. Equipment Asset Debit Debit j. Fees Earned Revenue Credit Credit k. Wages Expense Expense Debit Debit l. Unearned Revenue Liability Credit Credit Page 2 of 10 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview 2. award: 1 out of 1 point Exercise 2-4 Preparing general journal entries L.O. A1, P1 Prepare general journal entries for the following transactions of a new business called Pose for Pics. (Omit the "$" sign in your response.) Aug. 1 Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the business. 2 Paid $2,100 cash for an insurance policy covering the next 24 months. 5 Purchased office supplies for $880 cash. 20 Received $3,331 cash in photography fees earned. 31 Paid $675 cash for August utilities. Date General Journal Debit Credit Aug. 1 Cash 6,500 Photography Equipment 33,500 Madison Harris, Capital 40,000 2 Prepaid Insurance 2,100 Cash 2,100 5 Office Supplies 880 Cash 880 20 Cash 3,331 Photography Fees Earned 3,331 31 Utilities Expense 675 Cash 675 Exercise 2-4 Preparing general journal entries L.O. A1, P1 Prepare general journal entries for the following transactions of a new business called Pose for Pics. (Omit the "$" sign in your response.) Aug. 1 Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in...
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