acctquiz3 chap3 - EconomicEvent a b c Account a b c d e f...

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Economic Event Assets Liabilities                              Stockholders' Equity a. Purchased supplies on  account Increase Increase No Effect b. Received cash for providing a  service Increase No Effect Increase c. Expenses paid in cash Decrease No Effect Decrease Account Debit Credit Normal Balance a. Accounts Payable decrease increase credit b. Advertising Expense increase decrease debit c. Service Revenue decrease increase credit d. Accounts Receivable increase decrease debit e. Retained Earnings decrease increase credit f. Dividends increase decrease debit
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  June 1 Issues common stock to investors in exchange for $5,000 cash.   2 Buys equipment on account for $1,100.   3 Pays $500 to landlord for June rent.   12 Bills Jeff Gore $700 for welding work done. Account debited Account credited June 1 Cash Common stock 2 Equipment Accounts payable 3 Rent expense Cash 12 Accounts receivable Service revenue Ankiel Corporation has the following transactions during August of the current year.   Aug. 1 Issues shares of common stock to investors in exchange for $10,000.   4 Pays insurance in advance for 3 months, $1,500.   16 Receives $900 from clients for services rendered.   27 Pays secretary $500 salary. Indicate (a) the basic analysis and (b) the debit-credit analysis. Basic Analysis Debit-Credit Analysis Aug. 1 The asset Cash is increased; Debits increase assets;  the stockholders' equity account debit Cash $10,000 Common stock is increased.     Credits increase stockholders' equity:   credit Common stock $10,000
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        4 The asset Prepaid insurance is increased; Debits increase assets: the asset Cash is decreased. debit Prepaid insurance $1,500.       Credits decrease assets:   credit Cash $1,500.         16 The asset Cash is increased; Debits increase assets: the revenue Service revenue is increased debit Cash $900.       Credits increase revenues:   credit Service revenue $900.         27 The expense Salaries expense is increased; Debits increase expenses: the asset Cash is decreased. debit Salaries expense $500.       Credits decrease assets:   credit Cash $500. From the ledger balances below, prepare a trial balance for Trowman Company at June 30, 2010. All account balances are  normal.  (If answer is zero please enter 0, do not leave any fields blank.) Accounts Payable $3,000 Service Revenue $8,600 Cash 5,400 Accounts Receivable 3,000 Common Stock 18,000 Salaries Expense 4,000 Dividends 1,200 Rent Expense 1,000 Equipment 15,000 TROWMAN COMPANY Trial Balance June 30, 2010   Debit Credit Cash $ 5400 $ 0 Accounts Receivable 3000 0 Equipment 15000 0 Accounts Payable
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0 3000 Common Stock 0 18000 Dividends 1200 0 Service Revenue 0 8600 Salaries Expense 4000 0 Rent Expense
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acctquiz3 chap3 - EconomicEvent a b c Account a b c d e f...

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