Week 4 Tutorial Solutions PDF

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MACQUARIE BUSINESS SCHOOL Department of Accounting and Corporate Governance

ACCG1000 Accounting in Society WEEK 4 – TUTORIAL 4: Financial accounting for business – double entry accounting (Due week commencing 15th March) Chapter 2: Q2.3 (a)

Decrease assets, cash and decrease in equity, cleaning expenses.

(b)

Increase assets, equipment and decrease assets cash.

(c)

Increase assets, cash and increase equity, share capital

(d)

Decrease assets, cash and decrease liabilities, accounts payable

Chapter 2: Q2.6 (a)

Asset accounts are increased by debits and decreased by credits.

(b)

Liability accounts are decreased by debits and increased by credits.

(c)

The share capital account is decreased by debits and increased by credits.

(d)

Revenue accounts are decreased by debits and increased by credits.

(e)

Expense accounts are increased by debits and decreased by credits.

(f)

Dividend account are increased by debits and decreased by credits. Chapter 2: BE2.1

Assets

Liabilities

Equity

(a)

+

+

NE

(b)

+

NE

+

(c)

+&-

NE

NE

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Chapter 2: BE2.2 Account

Debit effect

Credit effect

Normal balance

(a)

Accounts payable

Decrease

Increase

Credit

(b)

Advertising expense

Increase

Decrease

Debit

(c)

Service revenue

Decrease

Increase

Credit

(d)

Accounts receivable

Increase

Decrease

Debit

(e)

Retained earnings

Decrease

Increase

Credit

(f)

Dividends

Increase

Decrease

Debit

Chapter 2: E2.1 Speedy Lawn Care Pty Ltd 1

Increase in assets

Increase in equity

2

Decrease in assets

Decrease in equity

3

Increase in assets

Increase in equity

4

Increase in assets

Increase in equity

5

Decrease in assets

Decrease in equity

6

Increase in liabilities

Decrease in equity

7

Increase in assets

Decrease in assets

8

Increase in assets

Decrease in assets

9

Increase in assets

Increase in liabilities

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