ORMAL BALANCE OF A LIABILITY IS A DEBIT/CREDIT THE NORMAL BALANCE OF AN INCOME ACCOUNT IS A DEBIT/CREDIT THE NORMAL BALANCE OF AN EXPENSE ACCOUNT IS DEBIT CREDIT 5 THE FOLLOWING OCCURRED DURING DEC 2014 INVESTED $20,000 TO START UP COMPANY VPAID RENT TO REALTY CO IN AMOUNT OF $5,000 PURCHASED OFFICE FURNITURE FROM FURN CO ON ACCOUNT FOR $30,000 VPERFORMED CONSULTING SERVICES FOR $200,000 V CASH RECEIPTS FROM CUSTOMER $100,000 op CASH DISBURSEMENT TO VENDORS FOR $20,000 Cash PAID WAGES IN AMOUNT OF $20,000 FROM THE ABOVE INFORMATION LISTED ABOVE PREPARE: A TRIAL BALANCE, AN INCOME STATEMENT, AND A BALANCE SHEET, AND A STATEMENT OF CASH FLOW AT DEC 31, 2014 ALSO PREPARE A TRIAL BALANCE AT JAN 1, 2015

ORMAL BALANCE OF A LIABILITY IS A DEBIT/CREDIT THE NORMAL BALANCE OF AN INCOME ACCOUNT IS A DEBIT/CREDIT THE NORMAL BALANCE OF AN EXPENSE ACCOUNT IS DEBIT CREDIT 5 THE FOLLOWING OCCURRED DURING DEC 2014 INVESTED $20,000 TO START UP COMPANY VPAID RENT TO REALTY CO IN AMOUNT OF $5,000 PURCHASED OFFICE FURNITURE FROM FURN CO ON ACCOUNT FOR $30,000 VPERFORMED CONSULTING SERVICES FOR $200,000 V CASH RECEIPTS FROM CUSTOMER $100,000 op CASH DISBURSEMENT TO VENDORS FOR $20,000 Cash PAID WAGES IN AMOUNT OF $20,000 FROM THE ABOVE INFORMATION LISTED ABOVE PREPARE: A TRIAL BALANCE, AN INCOME STATEMENT, AND A BALANCE SHEET, AND A STATEMENT OF CASH FLOW AT DEC 31, 2014 ALSO PREPARE A TRIAL BALANCE AT JAN 1, 2015

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PA: Consider the following situations and determine (1) which type of liability should be recognized...

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