Chapter 5.2 Homework
Pg. 152
4​.
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
The Bank account normally has a ​debit​ balance.
A revenue account normally has a ​credit​ balance.
An expense account normally has a ​debit​ balance.
Paying a creditor involves a ​debit​ entry to the creditor’s account.
The Drawings account receives a ​debit​ entry when the owner withdraws money
for personal use.
A lawyer gives a cash refund to a customer. The Bank account will receive a
credit​ entry and the Revenue account will receive a ​debit​ entry.
Supplies are bought on credit. The Supplies account will receive a ​debit​ entry
and the supplier’s account payable will receive a ​credit​ entry.
The Drawings account will not normally receive ​credit​ entries.
An increase in equity can be thought of as a ​credit​ to the Capital account.
Net income can be thought of as a ​credit​ to the Capital account.
Net loss can be thought of as a ​debit​ to the Capital account.
The owner takes a computer from the business for his personal (permanent)
use. The Drawings account will receive a ​debit​ entry.
Pg. 157
1.
Items
Opening Capital
Net Income or Net
Loss (+)
Drawings
Ending Capital
A.
$ 30 000
$ 15 000
$ 10 000
$ 35 000
B.
50 000
−2 000
7 000
​41 000
C.
70 000
32 000
​26 500
75 500
D.
​36 700
16 000
19 500
33 2000
E.
56 000
​14 000
30 000
40 000
F.
45 000
-5 000
25 000
15 000
G.
22 000
16 000
10 000
28 000
H.
​35 000
25 000
18 000
42 000
I.
120 000
45 000
​ 50 000
112 000
2.
Pg. 158
3. Has been copied into my notebook but here is a screenshot: