CH 2 HW ACC1101 - Ch 2 PDF

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Cielo Castaneda ACC 1101 Chapter 2 HW 09/10/2021 EX 2: Chart of Accounts Oak Interiors is owned and operated by Fred Biggs, an interior decorator. In the ledger of Oak Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—owner’s equity, 4—revenues, 5—expenses). The second digit of the account number indicates the specific account within each of the preceding major account classifications. Match each account number with its most likely account in the list that follows. The account numbers are 11, 12, 13, 21, 31, 32, 41, 51, 52, and 53. Accounts Payable. 21 Fred Biggs, Drawing. 32 Accounts Receivable 12 Land 13 Cash 11 Miscellaneous Expense 53 Fees Earned 41 Supplies Expense 52 Fred Biggs, Capital 31 Wages Expense 51 EX 3: Chart of Accounts Outdoor Leadership School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows: Accounts Payable 21 Miscellaneous Expense. 34 Accounts Receivable 12 Prepaid Insurance. 14 Cash 11 Rent Expense. 52 Equipment. 15 Supplies 13 Fees Earned 41 Supplies Expense. 53 Lorri Ross, Capital 31 Unearned Rent. 22 Lorri Ross, Drawing 32 Wages Expense. 51 List the accounts in the order in which they should appear in the ledger of Outdoor Leadership School and assign account numbers. Each account number is to have two digits: the first digit is to indicate the major classification (1 for assets, for example), and the second digit is to identify the specific account within each major classification (11 for Cash, for example).

EX 4: Rules of Debit and Credit The following table summarizes the rules of debit and credit. For each of the items (a) through (l), indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Debit Credit Debit Liability Credit Debit Debit Owner’s equity: Capital Credit Debit Credit Drawing Credit Debit Debit Income statement accounts: Revenue Credit Debit Credit Expense Debit Credit Debit EX 5: Normal Entries for Accounts During the month, Midwest Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. A. Accounts Payable (C) B. Accounts Receivable. (C) C. Cash (C) D. Fees Earned (B) E. Insurance Expense (A) F. Jerri Holt, Drawing (B) G. Utilities Expense (C) EX 6:Normal Balances of Accounts Identify each of the following accounts of Dispatch Services Co. as asset, liability, owner’s equity, revenue, or expense and state in each case whether the normal balance is a debit or a credit: Accounts Payable. Liability Accounts Receivable Asset Ashley Griffin, Capital Equity Ashley Griffin, Drawing Debit. Cash Asset Asset Fees Earned Revenue Office Equipment asset Rent Expense Expense Supplies. Asset Wages Expense. Expense...