# Supplies increases on the debit side and decreases on

• Notes
• 58
• 100% (3) 3 out of 3 people found this document helpful

This preview shows page 45 - 48 out of 58 pages.

Supplies increases on the debit side and decreases on the credit side. The ending balance in the Supplies account is Supplies purchased minus the amount of Supplies used during the period: Ending Supplies balance = \$1,520 - \$535 = \$985 Supplies Expense account : Supplies Expense is an expense account with a debit balance. Supplies Expense increases on the debit side and decreases on the credit side. The ending balance in the Supplies Expense account is the amount of Supplies used during the period: Ending Supplies Expense balance = \$535
ANSWER Cash \$28,880 Accounts Receivable 300 Service Revenue 2,000 Supplies 985 Supplies Expense 535 QUESTION To start his own business, Tom Taylor put \$22,400 of his personal cash into the business account. Given the following additional transactions calculate the ending balance of each of the following accounts after all journal entry amounts are posted Cash , Deferred Revenue , Service Revenue , and Accounts Receivable :
cash received in advance for revenue to be earned plus cash received from customers on account: Ending Cash balance = \$22,400 + \$1,315 + \$1,200 = \$24,915 Deferred Revenue account : Deferred Revenue is a liability account with a credit balance. Deferred Revenue increases on the credit side and decreases on the debit side. The ending balance in the Deferred Revenue account is the cash received in advance of earning minus the amount earned by the end of the period: Ending Deferred Revenue account = \$1,315 - \$1,090 = \$225 Service Revenue account : Service Revenue is a revenue account with a credit balance. Service Revenue increases on the credit side and decreases on the debit side. The ending balance in the Service Revenue account is the amount earned during the period plus the amount earned by the end of the period: Ending Service Revenue account = \$1,090 + \$1,600 = \$2,690 Accounts Receivable account : Accounts Receivable is an asset account with a debit balance. Accounts Receivable increases on the debit side and decreases on the credit side. The ending balance in the Accounts Receivable account is the amount of services performed on account minus the amount received from customers on account: Ending Accounts Receivable balance = \$1,600 - \$1,200 = \$400 ANSWER Cash \$24,915 Deferred Revenue 225 Service Revenue 2,690 Accounts Receivable 400