Unit Four: Debit And Credit Theory Assignment 3 Group Members: and Date: Value 40 Complete the following assignment by clicking and recording answers in the appropriate boxes. Save the document in your folder as U4A3. Question I Value 7 1. Define the following: a. Exceptional balance— b. On account— 2. What information does an account contain? 3. Provide an example of an account with a normal debit balance and provide an example of a transaction that would cause a debit entry to a debtor? Account with a normal debit balance: Debit Entry: 4. Provide an example that result in an exceptional balance. Question II Value 12 Examine the following ledger accounts. Following the proper steps balance the accounts by click through the exercise recording the sum of the debit and credit sides. Then record the ending balance on the correct side. Bank 2 000 400 100 300 Balance 150 25 120 100 A/R J. Wilson 300 50 100 270 80 A/P Wacox Co. 100 450 250 100 L. McHugh, Capital 175 4 560 400 Question III Value 6 The following accounts have exceptional balances. For each account explain: a. A possible cause for the exceptional balance. Bank 300 Reason: A/R E. Kane 100 Reason: A/P Wyler Ltd. 50 Reason: Question IV Value 15 Read each of the following phrases. From the drop-down field indicate by selecting if the phrase is best represented by the word “debit or by the word “credit. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit The balance of the office furniture account. The left side of an account. The balance of Accounts Receivable. A decrease in an asset. An increase in a liability. The right side of an account The effect on account payable when purchasing on account. The effect on account payable when payment is made on account. The effect on account receivable when a sale is made on account. The effect on account receivable when a payment on account is received. An exceptional balance in the Bank account. A debtor’s account. An exceptional balance in accounts receivable. A creditor’s account. An increase to Capital.