2-5 Mastery Problem, p. 48 (shortened)
Name: ____________________________________
Transactions:
June 1. Received cash from owner as an investment, $2,700.00.
2. Paid cash for rent, $500.00.
4. Received cash from sales, $850.00.
8. Sold services on account to Alston Goff, $700.00.
9. Bought supplies on account from Bethany Supplies, $200.00
13. Received cash on account from Alston Goff, $500.00.
16. Paid cash on account to Bethany Supplies, $50.00.
22. Paid cash for electric bill (utilities expense), $55.00.
23. Paid cash for advertising, $95.00.
26. Paid cash to owner for personal use, $400.00
1.
2.
3.
4.
June 1.
Cash
2,700
Which accounts are affected?
How is each account classified? (asset, liability, or owner’s equity)
How is each classification changed? (increase or decrease)
How is each amount entered in the accounts? (debit or credit side)
June 4.
Owner, Capital
2,700
June 2.
Cash
500
Rent Expense
500
CHECK AFTER EACH TRANSACTION–
o Do debits = credits?
o Did I label my accounts correctly?
Cash
850
Sales
850
June 8.
Accts. Rec. – A. G.
700
Sales
700
Accts. Pay.–B. Supplies
200
June 9.
June 22.
Supplies
200
June 13.
Accts. Rec. – A. G.
500
Cash
500
June 16.
Accts. Pay.–B. Supplies
50
Cash
50
Don’t forget
about VOCAB!
Cash
55
Utilities Expense
55
June 23.
Cash
95
Advertising Expense
95
June 26.
Cash
400
Owner, Drawing
400
chart of accounts – a list of accounts used by a business
credit – an amount recorded on the right side of a T account
debit – an amount recorded on the left side of a T account
normal balance – the side of the account that is increased
T account – an accounting device used to analyze transactions