EA6.
LO 3.3From the following list, identify which items are considered original sources:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
prepaid insurance
bank statement
sales ticket
general journal
trial balance
balance sheet
telephone bill
invoice from supplier
company sales account
income statement
EA7.
LO 3.4Indicate what impact the following transactions would have on the accounting equation,
Assets = Liabilities + Equity.
Impact
1
Impact
2
Received cash from issuance of common stock
Sold goods to customers on account
Collected cash from customer sales made in previous
month
Paid cash to vendors for supplies delivered last month
Purchased inventory on account
Table3.4
EA8.
LO 3.1For the following accounts please indicate whether the normal balance is a debit or a
credit.
A.
B.
C.
D.
E.
Sales
Dividends
Office Supplies
Retained Earnings
Accounts Receivable
F.
G.
H.
I.
J.
Prepaid Rent
Prepaid Insurance
Wages Payable
Building
Wages Expense
EA9.
LO 3.4Indicate what impact the following transactions would have on the accounting equation,
Assets = Liabilities + Equity.
Impact 1
Impact 2
Paid monthly note payment to bank
Sold inventory on account
Bought supplies, to be paid for next month
Received cash from sales this month
Paid for inventory purchased on account last month
Table3.5
EA10.
LO 3.1Identify the normal balance for each of the following accounts. Choose Dr for Debit; Cr
for Credit.
Normal balance
Utilities Expense
Cash
Equipment
Rent Revenue
Preferred Stock
Interest Payable
Table3.6
EA11.
LO 3.4Identify whether each of the following transactions would be recorded with a debit (Dr)
or credit (Cr) entry.
Debit or credit?
Cash increase
Supplies decrease
Accounts Payable increase
Common Stock decrease
Interest Payable decrease
Notes Payable decrease
Table3.7
EA12.
LO 3.4Identify whether each of the following transactions would be recorded with a debit (Dr)
or credit (Cr) entry.
Debit or credit?
Equipment decrease
Common Stock Sold increase
Gas and Oil Expense increase
Service revenue decrease
Miscellaneous Expense decrease
Bonds Payable decrease
Table3.8
EA13.
LO 3.4Identify whether ongoing transactions posted to the following accounts would normally
have only debit entries (Dr), only credit entries (Cr), or both debit and credit entries (both).