Title | Mastering Adjusting Entries Homework |
---|---|
Course | Accountancy |
Institution | Far Eastern University |
Pages | 26 |
File Size | 790.9 KB |
File Type | |
Total Downloads | 75 |
Total Views | 147 |
Download Mastering Adjusting Entries Homework PDF
MASTERI NG ADJUSTI NG ENTRI ES HOMEWORK EXERCI SESAND PROBLEMS A.EXERCI SES Sect i on1WHYWE USE ACCRUALS,DEFERRALSAND OTHER ADJUSTMENTS 1. OnOc t o ber1,20X0,Es pr eeCo .t ake so utaP10, 000l oanandagr e e st opayi nt er e s t t wi c ee ac hye arf ort hel i f eo ft hel oan:P300o nApr i l1andP300o nOc t o ber1.Ho w muc hi nt e r e s te xpe ns ewi l lEs pr e er e po r to ni t si nc o mes t at e me ntf o rt heye are nde d Dec e mbe r31,20X0i f : a.i ti so nac as hbas i s ? 0.Noi nt e re s twaspai ddur i ng20X0 b.i ti so nt heac c r ualbas i s ? P150i nt er e s taccr ue df orOct ober ,NovemberandDec ember 2. Ne art hee ndof20X0,JNTEnt e r pr i s esc o mpl e t ess e r vi c e sf o rac us t o me rands e ndsan i nvo i c ef o rP500.Aso fJNT’ sye are nd,nopayme nthasbe e nr ec e i ve d.I fJNTr e por t s20X0 i sac c o unt i ng . r e ve nueo fP500,i tmus tbeus i ngaccrualbas 3. OnDe c e mbe r2,20X1,P&Tpay sP1, 000t oane xt er mi nat o rf o rwo r kt hatwi l ls t ar ti n Januar y .I fP&Tr epo r t so ni t si nc o mes t at e me ntP1, 000f ore xt e r mi nat i nge xpe ns ef o r 20X1,i tmus tbeus i ngcas hbas i sac c o unt i ng. 4. Fo re ac ho ft hef ol l o wi ngunr e l at eds c e nar i o s ,s ho w ho w muc hr e ve nuei sr e por t edo nt he i nc o mes t at e me ntf or20X0unde rt hec as hbas i sv .ac c r ualbasis. Cas hBas i s OnNo ve mbe r1,20X0,Al e xiI nc .r ec e i v esP1, 800 i nr e nt alpayme nt sf o rNo ve mbe r ,De c e mbe r ,and Januar y( P600permont h) . MNM c at e r ss i xl unc he si nDe c e mbe r20X0.Eac h o ft hes i xc us t o me r si si nvo i c edP100,butaso f De c e mbe r31,20X0,o nl yo nehaspai d. Amus i c i anac c e pt sP200f o r8upc o mi ng we ddi ngs .AsofDe c e mbe r31,20X0,t he mus i c i anhaspe r f o r me dat2o ft he8.
AccrualBas i s
P1, 800
P1, 200
P100
P600 P400
P1, 600
5. Fo re ac ho ft hef ol l o wi ngunr e l at eds c e nar i o s ,s ho wt o t ale xpe ns esr e por t e do nt he i nc o mes t at e me ntf or20X0unde rt hec as hbas i sv .ac c r ualbas i s . Cas hBasi s I nDe c e mbe r20X0,ByCor unsadsc o s t i ng P30, 000.ByCor e c e i ve st hei nvo i c ebutdoe sno t payi tunt i lJanuar y20X1. OnDe c e mbe r1,20X0,KPTpay sP2, 400f o rt he ne xt12mont hs ’ pr oper t yi ns ur anc e . I nDe c e mbe r20X0,Andr e’ spaysP400t oPes t Co nt r olf o r4mo nt hs ’ s e r vi c e .Thefir s tt r e at ment wi l lbei nJanuar y20X1.
Ho me wo r k
AccrualBas i s P30000
P0 P2, 400
P200
P400 P0
1
Mas t e r i ngAdj us t i ngEnt r i e s Sect i on2ACCRUED REVENUE 1. Se l e c tt het e r mo nt her i ghtt hatbe s tc o mpl e t est hes t at e mento nt hel e f t .Ter msmaybe us edo nc e ,mor et hano nc e ,orno tatal l . s t at ene t Fai l i ngt omaket hee nt r yt oac c r uer e v enueunder i nc o me . ncre as eas s e t s . Thee nt r yt or e c or dac c r uedr e v enuei Ac c r ue dr e v enuei sr e v enuet hati se arnedbutno tc o l l e c t e d Fai l i ngt omaket hee nt r yt oac c r uer e v enueunder s t at e as s e t s . Thee nt r yt or e c or dac c r uedr e v enuei ncre as ene ti nc ome .
a.i nc r e as e s b.dec r e as e s c .o v er s t at e s d.unde r s t at e s e .e ar ne d f .une ar ned
2. Kur t zRe nt al sr e nt se qui pmentt oDi t kaonFe br uar y1.Le as et e r msr e qui r eDi t kat o makepayment st oKur t zo fP2, 000e ac hquar t e r :Apr i l30,Jul y31,Oc t o be r31,and Januar y31.Kur t zr ec e i ve spayme nt sf o rApr i l ,Jul y ,andOc t o be r . a. Whatj our nalent r ys ho ul dKur t zr e c o r do nDe c e mbe r31? AccruedRe ntRe cei vabl e P1, 333. 33 Re ntI ncome
1, 333. 33
b. I ft hi se nt r yi sno tr e c o r de d,ho w wi l li taffe c tKur t z ’ sfinanc i als t at e ment s ? Re ve nuei sunder s t at ed,ne ti nc omei sunder s t at edandas s e t sare under s t at ed. 3. I nt e l ll i c e ns est e c hno l o gi e st oamanuf ac t ur er .Theagr e e mentc al l sf o rI nt e l lt or e c ei ve P3f o re ac huni tmanuf ac t ur edwi t hl i c e ns i ngf e e sr e mi t t edquar t e r l y .Aso fDe c e mbe r31, I nt e l lhasr e c e i ve dt hef ol l o wi ngpayme nt s : Peri od 1/ 1t o3/ 31 4/ 1t o6/ 30 7/ 1t o9/ 30 10/ 1t o12/ 31
Uni t s Manuf act ured 475 350 525 600
Li cens i ngFees P1, 425 P1, 050 P1, 575 P1, 800
I nt e l lhasr e c e i ve dc he c ksf o rt hefir s tt woquar t e r s ,butno tt het hi r d;t hef o ur t hquar t e r c he c ki sno tdueunt i lJanuar y . a. I fI nt e l li so nt heac c r ualbas i s ,whatadj us t i nge nt r ys ho ul di tr e c o r datye are ndt o r e c o gni z er e v e nuee ar nedf r o mt hi smanuf ac t ur e r ? 3Q
Account sRec ei vabl e
P3, 150
Sal e s
P1, 575
Li cens i ngFeeRe ve nue 12/ 31
AccruedRe cei vabl e
P1, 575
P3, 600
Sal e s
P1, 800
Li cens i ngFeeRe ve nue
P1, 800
b. I ft hi se nt r yi sno tr e c o r de d,ho w wi l li taffe c tI nt e l l ’ sfinanc i als t at e me nt s ? Ho me wo r k
2
Mas t e r i ngAdj us t i ngEnt r i e s As s e t sar eunder s t at ed,i ncomei sunder s t at edandprofiti sunder s t at ed.
Ho me wo r k
3
Mas t e r i ngAdj us t i ngEnt r i e s 4. Yourfir m ho l dsaP15, 000,8% no t er e c e i vabl ei s s ue donAugus t1,20X0. I nt e r e s ti spai do nc eaye aronJul y31.OnJul y31,20X6,yo ur ec e i vet heno r mal i nt e r e s tpayme nt . a. Whatadj us t i ngent r ymus ty our ec o r dDe c e mbe r31,20X6? 12/ 31
AccruedI nt er es tRe cei vabl e
P500
I nt er es tI ncome
P500
b. I ft hi se nt r yi sno tr e c o r de d,ho w wi l li taffe c tyo urc ompany’ sfinanc i als t at e me nt s ? Ne ti nc omei sunder s t at edandas s e t si sunder s t at ed.
5. Yo urc o mpany ,whi c hhasafis c alye are ndi ngOc t obe r31,s e l l ss c ent e dbar so fs o apf o ra 12% c o mmi s s i o n.Aso fOc t o be r31,t o t als al e sar eP400, 000.Yourc o mpanyhasr e c ei ve d P30, 000,whi c hyo uc r edi t e dt oRe ve nue . a. Ho w muc haddi t i o nalr e ve nuemus ty o ur ec o r df o rt hefis c alye ar ? P18, 000addi t i onalre ve nue b. Whati st hej o ur nalent r yt or e c o r dt headdi t i o nalr e v e nue ? AccruedCommi s s i onsRec ei vabl e Commi s s i onsRe venue
P18, 000 P18, 000
Sect i on3ACCRUED EXPENSES( ACCRUED LI ABI LI TI ES) 1. Di l l Cobo r r o wsP200, 000o nSept e mbe r1,20X0,f r om Fi r s tBanc o r p.Mo nt hl yi nt e r e s ti s P1, 200.Thel o anagr ee me ntr e qui r e sDi l l Cot opa yt hei nt e r e s te v er y6mo nt hs .Thefir s t i nt e r e s tpayme nti sdueFe br uar y28,20X1. a. Whatadj us t i ngent r ymus tDi l l ComakeonDe c e mbe r31,20X0t or ec o gni z et he ac c r ue di nt e r e s t ? I nt er es tExpens e
P4, 800
I nt er es tPay abl e
P4, 800
b. Expl ai nt hei mpac to nt hefinanc i als t at e ment si ft hi se nt r yi sno tr e c or ded. Neti ncomei sover s t at edandl i abi l i t i esi sunder s t at ed.
2. Sal ar ye xpe ns eatQui c kDi nne rI nc .i sP7, 500perwe e kf o raMo nday–Fr i daywo r kwee k. Empl o y ee sar epai de ac hFr i day . a. I ft hec o mpany’ sy e are ndso naWe dnes day ,whatadj us t i nge nt r ymus ti tr ec o r d? Sal aryExpens e
P4, 500
AccruedSal aryPay abl e P4, 500 b. Expl ai nt hei mpac to nt hefinanc i als t at e ment si ft hi se nt r yi sno tr e c or ded. Neti ncomei sover s t at edandl i abi l i t i esi sunder s t at ed. Ho me wo r k
4
Mas t e r i ngAdj us t i ngEnt r i e s 3. Sal ar ye xpe ns eatSl o wCo o ke ri sP6, 000pe rwe e kf o raTue s day–Sundaywo r kwe e k. Empl o y ee sar epai do nSunday . a. I ft hec o mpany’ sy e are ndso naTues day ,whatadj us t i nge nt r ymus ti tmake ? Sal aryExpens e
P1, 000
AccruedSal aryPay abl e P1, 000
c . Expl ai nt hei mpac to nt hefinanc i als t at e ment si ft hi se nt r yi sno tr e c or ded. Neti ncomei sover s t at edandl i abi l i t i esi sunder s t at ed.
4. Ro j oEqui pment ,whi c hhasanOc t o be r31fis c alye ar ,r epor t si nc o meo fP200, 000f o rt he y e are nde d10/ 31/ 20X7.OnOc t o be r31,Ro j odi s c o v er st hef o l l o wi ng:
AP2, 000ut i l i t ybi l lboo ke donOc t o be r30,20X7,wasno tpai d.
Ro j ohasaP10, 000no t epay abl ewi t ha12% annuali nt e r e s tr at e .Payme nt sar e duee ve r ys i xmont hs .Thel as ti nt er e s tpayme ntwasmadeo nJune30,20X7.
Ro j o’ shas4s al ar i e de mpl o ye e s ,e ac hpai dP800awe e kf oraMo nday–Fr i da y wo r kwe e k.Pay c hec ksar edi s t r i but e do nFr i da ys .Oc t obe r31i saThur s day .
a. Pr epar et headj us t i nge nt r i e sr e qui r e df o rt hey e are nde dOc t obe r31,20X7. Ut i l i t i esExpense
P2, 000
AccruedUt i l i t i esPayabl e AccruedI nt eres tExpense I nt eres tPayabl e AccruedSal ari esExpense Sal ari esPayabl e
P2, 000
P400 P400 P2, 560 P2, 560
b. WhatRo j o ’ sne ti nc o mef o r20X7? P195, 040
Ho me wo r k
5
Mas t e r i ngAdj us t i ngEnt r i e s Sect i on4REVENUECOLLECTED I N ADVANCE( UNEARNED REVENUE) 1.Atye arend,Bi j our e c o r dsanadj us t i nge nt r yf o rune ar ne dr e ve nue . a. I ft headj us t i ngent r yi nc r e as esl i abi l i t i e s ,whatj our nalent r ywasr e c o r de dwhe nt he c as hwasr ec e i v ed? Cas h
xx Re ve nue
xx
b. I ft headj us t i ngent r yi nc r e as esr e v enue s ,s ho wt hej our nalent r yt hatwasr e c o r ded whe nt hec as hwasr e c e i v ed. Cas h
xx Une arnedRe ve nuexx
2. WyCo ’ sfis c alye arendsSept e mbe r30.OnSe pt e mbe r10,i tc o l l e c t sP30, 000f o rapai nt i ng j o bandc r edi t sUne ar nedPai nt i ngRe v enue .Aso fSe pt e mbe r30,60% o ft hewo r khas bee ndo ne .Whatadj us t i ngent r ymus tWyCor ec o r do nSept e mbe r30? Une arnedPai nt i ngRe venue
P18, 000
Pai nt i ngRe venue
P18, 000
3. OnAugus t1,I ns ur e Cowr i t e sa2y e arpo l i c yf o rat o t alo fP12, 000andr e c e i v e st hee nt i r e pa yme nti nadv anc e .I fI ns ur e Coc r e di t sRe ve nue ,whatadj us t i nge nt r ymus ti tr e c o r do n De c e mbe r31? Re venue
P9, 500
Une arnedRe venue
9, 500
4. OnNo ve mbe r1ATD e nt e r sa1ye arc o nt r ac tt opr o vi des e c ur i t yf orCo r pCo ’ swar e hous e s f orP12, 000aye arandr ec e i ve st hefir s t3mont hs ’ paymentats i gni ng. a. I fATDbo o kst hepayme ntasr e ve nue ,whatadj us t i ngent r ymus ti tr ec o r daty e ar e nd?Ho w wi l li t sfinanc i als t at e me nt sbemi s s t at e di ft hee nt r yi sno tr e c or ded? Re ve nue
P1, 000
Une arnedRe ve nue
P1, 000
Re ve nuei sunder s t at ed,ne ti nc omei sove rs t at edandl i abi l i t i esi s ove rs t at ed. b. I fATDbo o kst hepayme ntasal i abi l i t y ,whatadj us t i ngent r ymus ti tr ec o r datye ar e nd?Ho w wi l li t sfinanc i als t at e me nt sbemi s s t at e di ft hee nt r yi sno tr e c or ded? Une arnedRe ve nue Re ve nue
P2, 000 P2, 000
Re ve nuei sunder s t at ed,ne ti nc omei sove rs t at ed,l i abi l i t i esi sover s t at ed.
Ho me wo r k
6
Mas t e r i ngAdj us t i ngEnt r i e s 5. Thef ol l o wi ngt abl es ho wss ubs c r i pt i o nr e ve nuef o rt hr eeunr e l at e dc o mpani e s :
Be gi nni ngbal anc ei nUne ar ne dSubs c r i pt i o nRe ve nue
Company I I I I I I P 2, 400 P 3, 000 P 4, 500
Payme nt sr e c e i ve ddur i ngt hey e ar
40, 000
25, 000
?
Endi ngbal anc ei nUne ar ne dSubs c r i pt i o nRe ve nue Subs c r i pt i onr e ve nuee ar neddur i ngt heye ar
? 39, 000
4, 000 ?
2, 000 25, 000
a. Fi l li nt hemi s s i ngamo unt s . I .
P3, 400
I I .
P24, 000
I I I . P22, 500
b. I gno r i ngdo l l aramo unt s ,whatj our nale nt r i e sma yhaver e c o r dedt hepayme nt s ? Li abi l i t y: Cas h
xx Une arnedRe ve nue
xx
Re ve nue: Cas h
xx Re ve nue
xx
6. OnFe br uar y1,Al t a’ sc ol l e c t sP60, 000f oraj o bandc r e di t sRe v enue .Aso fApr i l30,Al t a’ s y e are nd,45% o ft hewo r ki sc o mpl e t e d.Whatadj us t i nge nt r ydo esAl t ar e c o r do nApr i l30? Re ve nue
P33, 000
Une arnedRe ve nue
Ho me wo r k
P33, 000
7
Mas t e r i ngAdj us t i ngEnt r i e s Sect i on5—PREPAI D( DEFERRED)EXPENSES 1. OnDe c e mbe r1,20X7,yo urc ompanypay sanannuali ns ur anc epr e mi um o fP3, 600t hat c o v er sDe c e mbe r1,20X7,t oNo ve mbe r30,20X8. a. Sho wt headj us t i ngent r yo nDe c e mbe r31,20X7,i ft heP3, 600payme ntwasr e c o r ded e pai dI ns ur anc e. i nPr I ns uranc eExpens e
P300
Pr epai dI ns ur anc e
P300
b. Sho wt headj us t i ngent r yo nDe c e mbe r31,20X7,i ft heP3, 600payme ntwasr e c o r ded i nI ns ur anc eExpens e . Pr epai dI ns ur anc e
P3, 300
I ns uranc eExpens e
P3, 300
2. Gi l Copay sP900f o ro ffic es uppl i e si nApr i landde bi t sOffic eSuppl i e s .OnMay31, Gi l Co’ sye are nd,aphy s i c alc o unt ,findsP200i ns uppl i e s . a.Whati st headj us t i nge nt r y? Suppl i e sExpens e P700 Suppl i e s P700 b. I ft hi se nt r yi sno tr e c o r de d,ho w wi l li taffe c tGi l Co’ sfinanc i als t at e me nt s ? Neti ncomeandt ot alas s e t swi l lbeover s t at ed. 3. Thef o l l o wi ngt abl es ho wsi ns ur anc epr e mi umspai dbyt hr e eunr e l at edc ompani e s :
Be g i nni ngbal anc ei nPr epai dI ns ur anc e Pr emi umspai ddur i ngt heYe ar Endi ngbal anc ei nPr epai dI ns ur anc e I ns ur anc eus e dupdur i ngt hey ear
Case I I P300 2, 500 400 ?
I P500 4, 000 ? 3, 000
I I I P4, 500 ? 200 5, 500
a. Fi l li nt hemi s s i ngi nf o r mat i o n. I .
P1, 500
I I .
P2, 400
I I I . P1, 200 b. I gno r i ngdo l l aramo unt s ,gi veal lpo s s i bl ej o ur nale nt r i est or e c or dt hepr e mi um payme nt s . As s e tme t hod: Pr epai dI ns ur anc e
xx
Cas h
xx
Expens eme t hod: I ns uranc eExpens e Cas h
xx xx
4. OnSe pt e mbe r1,Bar Cos i gnsa2ye arr e nt alagr e eme ntpayi ngP6, 000r enti nadvanc e . Ho me wo r k
8
Mas t e r i ngAdj us t i ngEnt r i e s a. I ft hepr epayme ntwasbo o kedaspr e pai dr e nt ,whati st heye ar endadj us t i ngent r y? Re ntExpens e Pr epai dRent
P1, 000 P1, 000
c .I ft hepr epayme ntwasbo o kedasr e nte xpe ns e ,whati st heye ar e ndadj us t i nge nt r y? Pr epai dRent
P5, 000
Re ntExpens e
P5, 000
5. I nAugus t ,Je mCo ,whi c hhasanOc t o be r31y e are nd,pay sP1, 200f oro ffic es uppl i e sandr e c o r ds i ti nSuppl i esExpens e .OnOc t obe r31,aphys i c alc ountr e ve al sP440o fs uppl i e sunus ed. a.Whatadj us t i ngent r ymus tJemCor e c o r do nOc t o be r31? Suppl i e s Suppl i e sExpens e
P440 P440
b. I ft hi se nt r yi sno tr e c o r de d,ho w wi l li taffe c tJe mCo’ sfinanc i als t at e me nt s ? Suppl i e sexpens ewi l lbeover s t at ed,neti ncomewi l lbe.Tot alAs s e t swi l lbe under s t at ed.
Sect i on6OTHER ENDOFPERI OD ENTRI ES 1. Go Copur c has e sabui l di ngf orP350, 000.I ft hebui l di nghasane s t i mat edl i f eo f30ye ar s andar e s i dualval ueo fP50, 000,whati st headj us t i nge nt r yi nt heye arofpur c has e ? Depre ci at i onExpens e
P10, 000
Acc umul at edDepre ci at i on
P10, 000
2. Fo r20X9,PyCohasc r e di ts al eso fP200, 000.Bas e do npas te xpe r i e nc e ,Pyl oe s t i mat es t hat3% o fc r e di ts al eswi l lbeunc ol l ec t i bl e .Atye arend,t hebal anc ei nAl l o wanc ef o r Doubt f ulAc c o unt si sP4, 000.Whati st headj us t i nge nt r yt or e c or d20X9badde bt e xpe ns e ? BadDe btExpens e
P6, 000
Al l owanc ef orDoubt f ulAc count s
P6, 000
3. Att hee ndo f20X9,Spe ndCohasac c ount sr e c e i vabl eo fP70, 000,o fwhi c hi te s t i mat e s 10% wi l lbebadde bt .Al l o wanc ef o rDo ubt f ulAc c o unt shasade bi tbal anc eo fP4, 000. a. Whatdo est hede bi tbal anc ei nAl l o wanc ef orDoubt f ulAc c o unt si mpl yabo ut20X8? Badde btexpens ewasre cor dedal i t t l ei n20X8. b. Whati st he20X9adj us t i ngent r yf o rbadde bt ? BadDe btExpens e P11, 000 Al l owanc ef orDoubt f ulAc count s
P11, 000
c . Whati st het e r mf o rt hedi ffe r e nc ebe t we ent hec l os i ngbal anc e si nAc c o unt s Rec e i vabl eandAl l o wanc ef orDoubt f ulAc c o unt s ? Netr e al i z abl eval ue Ho me wo r k
9
Mas t e r i ngAdj us t i ngEnt r i e s 4. Mat c ht het e r msi nt hel e f t handc o l umnbe l o w wi t ht hede s c r i pt i o nsont her i ght . 1.Pe r c e nt ageofc r e di t s al e sme t ho d 2.Di r e c twr i t eoffme t ho d
a.Re qui r edt or e c o gni z ebadde btunde rGAAP b.Es t i mat eo fbadde bte xpens ebas edo nt heage o fout s t andi ngr e c e i vabl e s
3.Al l o wanc eme t ho d
c .Es t i mat eo fbadde btbas edo nc r e di ts al es
4.Per c e nt ageofac c ount s r e c ei vabl eme t ho d
d.Requi r e dt or e c o gni z ebadde btunde rt axl aw
1.c.
2.d.
3.a
4.b
5. Be l o w ar ePr uCo ’ se nt r i e st ot woac c ount sf o rt heye ar .
a. Whatdot hede bi t st ot heAl l o wanc eac c ountr e pr es e nt ?Sho wt het hr e ej o ur nalent r i es t hatl e dt ot het hr e ede bi t si nt heAl l o wanc eac c o unt . Al l owanc ef orDoubt f ulAc count s P200 Account sRec ei vabl e
P200
Al l owanc ef orDoubt f ulAc count s P100 Account sRec ei vabl e
P100
Al l owanc ef orDoubt f ulAc count s P400 Account sRec ei vabl e
P400
b. Pr uc ous e st hepe r c ent ageofc r e di ts al e sme t hod.I fi tes t i mat est hat2% o fi t sP250, 000 i nc r edi ts al e swi l lno tbec o l l e c t e d,whatadj us t i ngent r ydo esPr uCor e c or dt or e c o gni z e badde bte xpe ns ef o rt hey e ar ? BadDe btExpens e
P5, 000
Al l owanc ef orDoubt f ulAc count s
P5, 000
c . No w as s umet hatPr uc ous est hepe r c e nt ageo fac c ount sr ec e i vabl eme t ho d.I fi te s t i mat e s t hatP4, 000ofi t sr e c e i vabl e swi l lno tbec ol l ec t abl e ,whatadj us t i nge nt r ydo esPr uCor e c o r d t or e c o gni z ebadde bte xpe ns ef o rt heye ar ? BadDe btExpens e
P3, 450
Al l owanc ef orDoubt f ulAc count s Ho me wo r k
P3, 450 10
Mas t e r i ngAdj us t i ngEnt r i e s Sect i on7FROM UNADJUSTED TRI ALBALANCE TO FI NANCI ALSTATEMENTS 1. Fo re ac hac c o untl i s t e dbe l o w,fil li nt heno r malbal anc eas“ de bi t ”o r“ c r edi t . ”
Account
Normalbal ance
Ac c ount sPay abl e
Cr edi t
Ac c ount sRe c e i vabl e
De bi t
Ac c umul at e dDe pr ec i at i o n—Equi pment
Cr edi t
Adve r t i s i ngExpe ns e
De bi t
Cas h
De bi t
Depr ec i at i o nExpens e—Aut o mobi l es
De bi t
Depr ec i at i o nExpens e—Equi pme nt
De bi t
Equi pment
De bi t
...