Chapter 02 – Double-Entry Accounting
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placing the account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Supplies
4.
Prepaid Insurance
5.
Equipment
6.
Truck
7.
Notes Payable
8.
Accounts Payable
9.
Common Stock
10.
Dividends
11.
Fees Earned
12.
Wages Expense
13.
Rent Expense
14.
Utilities Expense
15.
Truck Expense
16.
Miscellaneous Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Stockholders purchased shares of
common stock.
b. Paid rent for the period of
January 3 to the end of the month.
c. Purchased truck for $30,000 with
a cash down payment of $5,000
and the remainder on a note.
d. Purchased equipment on account.
ANSWER:
Transactions
Account(s) Credited
a.
9
b.
1
c.
1,7
d.
8
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
FNMN.WAJO.19.02-02 – LO: 02–02
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
197. On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use
for transactions (a) through (e), each identified by a number. Following this list are the transactions that occurred in
Walker’s first month of operation. You are to indicate for each transaction the accounts that should be debited and
credited by placing the account number(s) in the appropriate box.
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1.
Cash
2.
Accounts Receivable
3.
Supplies
4.
Prepaid Insurance
5.
Equipment
6.
Truck
7.
Notes Payable
8.
Accounts Payable
9.
Common Stock
10.
Dividends
11.
Fees Earned
12.
Wages Expense
13.
Rent Expense
14.
Utilities Expense
15.
Truck Expense
16.
Miscellaneous Expense
17.
Insurance Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Purchased supplies for cash.
b. Paid the annual premiums on
property and casualty insurance.
c. Received cash from customers on
account.
d. Paid a creditor on account.
e. Received cash from customer for
services provided.
ANSWER:
Transactions
Account(s) Debited
Account(s) Credited
a.
3
1
b.
4
1
c.
1
2
d.
8
1
e.
1
11
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
FNMN.WAJO.19.02-02 – LO: 02–02
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
12/7/2017 2:34 PM
198. On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use
for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in
Walker’s first month of operations. You are to indicate for each transaction the accounts that should be debited and
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Page 84
199. Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are
the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the
account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Office Supplies
4.
Land
5.
Interest Receivable
6.
Building
7.
Truck
8.
Equipment
9.
Accounts Payable
10.
Interest Payable
11.
Insurance Payable
12.
Utilities Expense
13.
Notes Payable
14.
Prepaid Insurance
15.
Service Revenue
16.
Common Stock
17.
Insurance Expense
18.
Interest Expense
19.
Office Supplies Expense
20.
Unearned Service Revenue
21.
Dividends
Transactions
Account(s) Debited
Account(s) Credited
a. Utility bill is received; payment
will be made in 10 days.
b. Paid the utility bill previously
recorded in transaction (a).
c. Bought a three-year insurance
policy and paid in full.
d. Received $7,000 from a contract
to perform accounting services
over the next two years.
ANSWER:
Debit
Credit
a.
12
9
b.
9
1
c.
14
1
d.
1
20
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
FNMN.WAJO.19.02-02 – LO: 02–02
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions