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Assignment

The document outlines various financial transactions involving assets, liabilities, and equity accounts, detailing their effects and normal balances. It includes specific examples of cash inflows and outflows, equipment purchases, expenses, and revenue recognition. Each transaction is categorized by type, account, effect, and balance, illustrating fundamental accounting principles.

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buitngocbinh22
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
2 views

Assignment

The document outlines various financial transactions involving assets, liabilities, and equity accounts, detailing their effects and normal balances. It includes specific examples of cash inflows and outflows, equipment purchases, expenses, and revenue recognition. Each transaction is categorized by type, account, effect, and balance, illustrating fundamental accounting principles.

Uploaded by

buitngocbinh22
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Transaction

(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
Jan. 2 Asset Cash Increase Debit
Equity Share
Capital—
Ordinary
Increase Credit
3 Asset Equipment Increase
Debit Asset Cash Decrease
Debit
9 Asset Supplies Increase Debit
Liability Accounts
Payable
Increase Credit
11 Asset Accounts
Receivable
Increase Debit Equity Service
Revenue
Increase Credit
16 Equity Advertising
Expense
Increase Debit Asset Cash
Decrease Debit
20 Asset Cash Increase Debit
Asset Accounts
Receivable
Decrease Debit
23 Liability Accounts
Payable
Decrease Credit Asset Cash
Decrease Debit
28 Equity Dividends Increase
Debit Asset Cash Decrease
Debit
Transaction
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
Jan. 2 Asset Cash Increase Debit
Equity Share
Capital—
Ordinary
Increase Credit
3 Asset Equipment Increase
Debit Asset Cash Decrease
Debit
9 Asset Supplies Increase Debit
Liability Accounts
Payable
Increase Credit
11 Asset Accounts
Receivable
Increase Debit Equity Service
Revenue
Increase Credit
16 Equity Advertising
Expense
Increase Debit Asset Cash
Decrease Debit
20 Asset Cash Increase Debit
Asset Accounts
Receivable
Decrease Debit
23 Liability Accounts
Payable
Decrease Credit Asset Cash
Decrease Debit
28 Equity Dividends Increase
Debit Asset Cash Decrease
Debit
Transaction
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
Jan. 2 Asset Cash Increase Debit
Equity Share
Capital—
Ordinary
Increase Credit
3 Asset Equipment Increase
Debit Asset Cash Decrease
Debit
9 Asset Supplies Increase Debit
Liability Accounts
Payable
Increase Credit
11 Asset Accounts
Receivable
Increase Debit Equity Service
Revenue
Increase Credit
16 Equity Advertising
Expense
Increase Debit Asset Cash
Decrease Debit
20 Asset Cash Increase Debit
Asset Accounts
Receivable
Decrease Debit
23 Liability Accounts
Payable
Decrease Credit Asset Cash
Decrease Debit
28 Equity Dividends Increase
Debit Asset Cash Decrease Debi
Ex2.9

1. Owner invested $24,000 in the business.


Cash 24,000
Owner's Capital 24,000

2. Obtained a bank loan for $7,000 by issuing a note payable.


Cash 7,000
Notes Payable 7,000

3.Paid $11,000 cash to buy equipment.


Equipment 11,000
Cash 11,000

4. Paid $1,200 cash for April office rent.


Rent Expense 1,200
Cash 1,200

5.Paid $1,450 for supplies.


Supplies Expense 1,450
Cash 1,450

6.Purchased $600 of advertising in the Daily Herald, on account.


Advertising Expense 600
Accounts Payable 600

7. Performed services for $18,000: cash of $2,000 was received from customers, and the balance of $16,000
was billed to customers on account.
Cash 2,000
Accounts Receivable 16,000
Service Revenue 18,000

8. Cash withdrawal of $400 by owner for personal use.


Owner's Withdrawals 400
Cash 400

9. Paid the utility bill for the month, $2,000.


Utilities Expense 2,000
Cash 2,000

10.Paid Daily Herald the amount due in transaction


Accounts Payable 600
Cash 600

11.Paid $40 of interest on the bank loan obtained in transaction


Interest Expense 40
Cash 40

12.Paid employees’ salaries and wages, $6,400.


Salaries and Wages Expense. 6,400
Cash 6,400

12.Received $12,000 cash from customers billed in transaction


Cash 12,000
Accounts Receivable 12,000

Asset Supplies Increase Debit


Liability Accounts
Payable
Increase Cre

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