Drill 1-D1 Classifying assets, liabilities, and owner’s equity
INSTRUCTIONS:
Classify each item listed below as an asset, liability, or owner’s equity by placing a check
mark in the Asset, Liability, or Owner’s Equity column.
Asset
Liability
Owner’s
Equity
1. Cash
2. Alice Jones, Capital
3. Prepaid Insurance
4. Steward Supply Company (a creditor)
5. Supplies
6. Any amount owed
8. Anything owned
Drill 1-D2 Determining how revenue, expense, and withdrawal transactions
change an accounting equation
INSTRUCTIONS:
Decide which accounts in the accounting equation are changed by each of the following
transactions. Place a plus (+) in the appropriate column if the account is increased. Place
a minus (-) in the appropriate column if the account is decreased.
Transactions
1. Received cash from owner as an investment.
3. Paid cash for telephone bill.
5. Paid cash to owner for personal use.
7. Received cash from sales.
9. Bought supplies on account from Maxwell Company.
11. Received cash from sales.
12. Paid cash on account to Maxwell Company.
Assets
=
Liabilities
+
Owner’s
Equity
Trans.
No.
+
Supplies
+
Prepaid
Insurance
=
Maxwell
Company
+
Susan
Sanders,
Capital
1.
+
2.
+
3.
–
4.
–
5.
–
6.
–
7.
+
8.
–
9.
+
+
10.
+
11.
+
12.
–
Drill 2-D1 Analyzing how transactions affect accounts
The form for this drill is on the next page.
INSTRUCTIONS:
1. Using the following account titles, write the accounts affected by each transaction in
Column 2.
2. For each account title, write the account classification in Column 3.
4. For each account title, place a check mark in either Column 6 or 7 to indicate if the
account is increased (+) or decreased (-) by this transaction.
5. For each account title, place a check mark in either Column 8 or 9 to indicate if the
account is changed by a debit or a credit.
Transactions
2. Paid cash for supplies.
4. Bought supplies on account from Miller Supplies.
6. Paid cash for rent.
8. Paid cash for miscellaneous expense.
9. Paid cash for telephone bill (utilities expense).
(The form for Drill 2-D1 is on the next page.)
Drill 2-D1 Analyzing how transactions affect accounts (continued)
1
2
3
4
5
6
7
8
9
Trans.
No.
Accounts
Affected
Account
Classification
Account’s
Normal Balance
How is
Account
Affected?
Entered in
Account as a
Debit
Credit
+
–
Debit
Credit
Cash
Asset
Jeff Dixon, Capital
Supplies
Asset
Cash
Asset
Prepaid Insurance
Asset
Cash
Asset
4.
Supplies
Asset
Accounts Payable—Miller
Supplies
Liability
Accounts Payable—Miller
Supplies
Liability
Cash
Asset
6.
Rent Expense
Expense
Cash
Asset
7.
Repair Expense
Expense
8.
Misc. Expense
Expense
Cash
Asset
9.
Utilities Expense
Expense
Cash
Asset
Drill 2-D2 Analyzing transactions
INSTRUCTIONS:
1. Using the following account titles, write the accounts affected by each transaction in
Column 2.
Cash
Accounts Receivable—Darnell Lee
Supplies
Sales
Advertising Expense
Miscellaneous Expense
3. For each account title, place a check mark in either Column 4 or 5 to indicate the normal
balance.
4. For each account title, place a check mark in either Column 6 or 7 to indicate if the account is
Transactions
1. Paid cash for advertising.
3. Received cash from owner as an investment.
5. Bought supplies on account from Gable Supplies.
7. Paid cash for water bill.
9. Paid cash for rent.
11. Received cash from sales.
12. Paid cash for insurance.
(The form for Drill 2-D2 is on the next page.)
Drill 2-D2 Analyzing transactions (continued)
1
2
3
4
5
6
7
8
9
Trans.
No.
Accounts
Affected
Account
Classification
Account’s Normal
Balance
How Is Account
Affected?
Entered in
Account as a
Debit
Credit
+
–
Debit
Credit
Cash
Asset
Repair Expense
Expense
Cash
Asset
Mary Jacobs, Capital
Cash
Asset
5.
Supplies
Asset
6.
Cash
Asset
Utilities Expense
Expense
Supplies
Asset
Cash
Asset
Rent Expense
Expense
Cash
Asset
Accts. Rec.—Darnell Lee
Asset
Sales
Revenue
Cash
Asset
Sales
Revenue
12.
Prepaid Insurance
Asset
Cash
Asset
Drill 3-D1 Classifying accounts
A form containing account titles is shown below.
INSTRUCTIONS:
2. Place a check mark in either Column 7 or 8 to indicate on which financial statement each
account will be reported.
1
2
3
4
5
6
7
8
Account Title
Account Classification
Financial Statement
Asset
Liability
Owner’s
Equity
Revenue
Expense
Income
Statement
Balance
Sheet
1. Cash
2. Alice Wayne, Capital
3. Alice Wayne, Drawing
4. Advertising Expense
5. Coen Office Supplies
(a creditor)
6. Insurance Expense
7. Miscellaneous Expense
9. Prepaid Insurance
10. Rent Expense
11. Sales
12. Supplies
13. Supplies Expense
Drill 3-D2 Journalizing transactions
Tamika Gilbert’s business uses the following accounts.
Cash
Accounts Receivable—Klein Co.
Tamika Gilbert, Capital
Tamika Gilbert, Drawing
INSTRUCTIONS:
Journalize the following transactions.
Transactions
1. Received cash from sales, $900.00.
3. Paid cash for supplies, $75.00.
5. Paid cash for advertising, $85.00.
7. Sold services on account to Palmer Carson, $240.00.
9. Paid cash for the telephone bill, $125.00.
11. Received cash from sales, $500.00
Account Title
Debit
Credit
1.
Cash
900.00
Sales
900.00
2.
Accounts Receivable – Klein Co.
200.00
Sales
200.00
3.
Supplies
75.00
Cash
75.00
4.
Accounts Payable – Matson Company
750.00
Cash
750.00
5.
Advertising Expense
85.00
Cash
85.00
6.
Tamika Gilbert, Drawing
1000.00
Cash
1000.00
Sales
240.00
Cash
160.00
Cash
125.00
10.
Cash
850.00
Tamika Gilbert, Capital
850.00
11.
Cash
500.00
Sales
500.00
12.
Prepaid Insurance
290.00
Cash
290.00
Drill 4-D1 Preparing a chart of accounts
INSTRUCTIONS:
2. In column 2, write the account number that would be assigned to the account described in
Column 1. Account numbers are assigned by 10s.
3. Check your answers with Delgado Web Services’ chart of accounts, page 3. Determine if
1. The first asset account
110
2. The first liability account
210
310
4. The first revenue account
410
5. The first expense account
510
6. The third asset account
130
7. The fourth expense account
540
8. The owner’s drawing account
320
9. The cash account
110
10. The sales account
410
310
Drill 5-D1 Replenishing a petty cash fund
KeepClean replenished petty cash on the dates shown in Column 2 of the following table. The
information in Columns 3 to 5 is obtained from the petty cash reports.
INSTRUCTIONS:
Use the T accounts below to analyze each transaction given in the table. Label each amount in
the T accounts with the corresponding transaction letter.
1
2
3
4
5
Trans.
Replenished on
Summary of Petty Cash Slips
Supplies
Advertising
Miscellaneous
A
July 31
32.00
25.00
C
Cash
Advertising Expense
(A) 57.00
(A) 25.00
(B) 46.00
(B) 20.00
(C) 75.00
(C) 20.00
(D) 30.00
Supplies
Miscellaneous Expense
(A) 32.00
(B) 5.00
(B) 21.00
(C) 15.00
(C) 40.00
(D) 20.00
(D) 10.00
Drill 6-D1 Extending account balances on a work sheet
INSTRUCTIONS:
2. Place a check mark in Columns 5, 6, 7, or 8 to indicate the column to which each up-to-date
account balance will be extended.
1
2
5
6
7
8
Trial Balance
Income
Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
1. Advertising Expense
3. Cash
4. Miscellaneous Expense
5. Maria Dorn, Capital
6. Maria Dorn, Drawing
7. Prepaid Insurance
8. Rent Expense
9. Repair Expense
11. Supplies
12. Utilities Expense
Drill 6-D2 Calculating net income or net loss on a work sheet
The column totals from five different work sheets are given on the form below.
INSTRUCTIONS:
Complete the following for each company.
2. Add the amounts in each column. Write the totals on line 3.
3. Verify the accuracy of your proving totals.
Company A
1. Column totals
$9,000
$9,500
$35,500
$35,000
2. Net Income
500
500
3. Proving totals
9,500
9,500
35,500
35,500
Company B
1. Column totals
$1,500
$2,000
$7,500
$7,000
2. Net Income
500
500
3. Proving totals
2,000
2,000
7,500
7,500
Company C
2. Net Loss
400
400
3. Proving totals
5,200
5,200
26,900
26,900
Company D
1. Column totals
$5,300
$8,150
$34,950
$32,100
2. Net Income
2,850
2,850
3. Proving totals
8,150
8,150
34,950
34,950
Company E
1. Column totals
$5,300
$4,130
$33,400
$34,570
2. Net Loss
1,170
1,170
3. Proving totals
5,300
5,300
34,570
34,570
Drill 7-D1 Preparing an Income Statement
From the work sheet below, prepare an income statement for The Sound of Stone.
INSTRUCTIONS:
Complete the following.
2. Calculate and record the amount of net income or net loss.
4. Calculate and record the ratios for total expenses and net income. Round percentages
to the nearest 0.1%.
1. Cash
8,272
8,272
2. Petty Cash
200
200
3. Accounts Receivable—HartCo
100
100
5. Supplies
6. Prepaid Insurance
1,200
100
1,100
7. Accts. Pay.—First Audio
1,360
8. Accts. Pay.—Office Supply Co.
20
20
10. Shannon Stone, Drawing
600
600
11. Income Summary
12. Sales
4,411
4,411
13. Advertising Expense
273
273
14. Insurance Expense
100
100
15. Miscellaneous Expense
16. Rent Expense
250
250
17. Supplies Expense
18. Utilities Expense
115
115
20. Net Income
Drill 7-D1 Preparing an Income Statement (continued)
The Sound of Stone
Income Statement
For the Month Ended September 30, 20- –
% of
Sales
Revenue:
Sales
4,411
100.0
Expenses:
Advertising Expense
273
Insurance Expense
100
Miscellaneous Expense
Supplies Expense
2,564
Utilities Expense
115
Total Expenses
3,312
Net Income
1,099
Drill 7-D2 Preparing a Statement of Owner’s Equity
INSTRUCTIONS:
From the worksheet in Drill 7-D1, prepare a Statement of Owner’s Equity for The Sound of
Stone for the month ended September 30, 20— using the form below.
The Sound of Stone
Statement of Owner’s Equity
For the Month Ended Septemter 30, 20—
Drill 7-D3 Preparing a balance sheet
INSTRUCTIONS:
From the work sheet in Drill 7-D1, prepare the September 30, 20— balance sheet for The Sound
of Stone using the form below.
The Sound of Stone
Balance Sheet
September 30, 20- –
Assets
Liabilities
Cash
8,272
Accts. Pay.—First Audio
1,360
Petty Cash
200
Accts. Pay.—Office Supply Co.
20
Accounts Receivable—HartCo
100
Total Liabilities
Club
Supplies
Shannon Stone, Capital
Prepaid Insurance
Total Assets
Total Liab. and Owner’s Equity
Drill 8-D1 Determining accounts affected by adjusting and closing entries
A form containing account titles is shown below.
INSTRUCTIONS:
1. For each account title on the chart, place a check mark in either Column 2 or 3 to indicate
whether the account is affected by an adjusting entry.
2. For each account title on the chart, place a check mark in either Column 4 or 5 to indicate
whether the account is affected by a closing entry.
3. For each account title on the chart, place a check mark in either Column 6 or 7 to indicate
whether the account has a balance after closing entries are posted.
1
2
3
4
5
6
7
Account Title
Account Is
Affected by an
Adjusting Entry
Account Is
Affected by a
Closing Entry
After Closing
Entries Are
Posted, Account
Has a Balance
Yes
No
Yes
No
Yes
No
1. Advertising Expense
2. Accounts Payable—Baer Supplies
3. Cash
4. Accounts Payable—Gates Office
Supplies
5. Alisha Downs, Capital
6. Alisha Downs, Drawing
7. Income Summary
8. Insurance Expense
9. Miscellaneous Expense
10. Prepaid Insurance
11. Rent Expense
12. Sales
13. Supplies
14. Supplies Expense
15. Utilities Expense
Drill 9-D1 Calculating purchases discounts
The invoice amount, purchases discount rate, invoice date, and payment date for four different
purchases are given below. Assume the discount period is 10 days.
INSTRUCTIONS:
For each purchase, calculate the (a) purchases discount and (b) cash amount after discount.
Purch.
Inv.
No.
Invoice
Amount
Purchases
Discount
Rate
Invoice Date
Payment
Date
(a)
(b)
Purchases
Discount
Cash
Amount
after
Discount
1
$1,000.00
2%
1/26
2/8
0.00
1,000.00
3
600.00
1%
6/8
6/20
0.00
600.00
4
250.00
2%
8/24
9/2
5.00
245.00
Drill 9-D2 Calculating petty cash short and petty cash over
Information about petty cash transactions for four different companies is given in the chart
below.
INSTRUCTIONS:
For each company, determine the amount, if any, of petty cash short or petty cash over. Indicate
petty cash over with a plus sign (+) and petty cash short with a minus sign (-). Enter None if the
petty cash account is balanced.
Company
Petty Cash Record
Amount of
Cash in
Cash Box
Amount of
Cash Over
(+)
Or
Cash Short
(-)
Beginning
Balance
Distribution of Payments
Supplies
Advertising
Expense
Miscellaneous
Expense
1
$300.00
$46.25
$76.32
$91.87
$85.56
None
2
250.00
24.76
82.35
18.21
120.68
-$4.00
3
150.00
12.43
51.45
14.15
4
200.00
53.98
25.34
34.25