College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter 2, Problem 3E
R. Dalberg operates Dalberg’s Tours. The company has the following chart of accounts:
Using the chart of accounts, record the following transactions in pairs of T accounts. Give the T account to be debited first and the account to be credited to the right. Show debit and credit and plus and minus signs. (Example: Received and paid the bill for the month’s rent, $480.)
- a. Received and paid the electric bill, $175.
- b. Bought supplies on account, $135.
- c. Paid for insurance for one year, $580.
- d. Made a payment on account to a creditor, $65.
- e. Received and paid the telephone bill, $186.
- f. Sold services on account, $1,375.
- g. Received and paid the gasoline bill for the van, $130.
- h. Received cash on account from customers, $1,458.
- i. Dalberg withdrew cash for personal use, $700.
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REQUIRED:
For each of the transactions, state which accounts are affected, state the normal balance for each account, and indicate whether the transaction is a debit or credit to that account. Set up your answers in columns, as indicated below.
Accounts Affected Normal Balance Debit or Credit
example ~ paid cash for office supplies
example: z cash debit credit
office supplies debit…
You are given the following list of accounts with dollar amounts:
Rent Expense- $450
Cash-$1,725
Service Revenue- $750
M. Powell, Withdrawals-$375
Accounts Payable-$600
M. Powell, Capital-$1,200
Insert each account name at the top of a corresponding T account as shown in the attached image, and enter the dollar amount as a normal balance in the account. Then show that the accounting equation is in balance.
The chart of accounts for Roth Co. includes the following accounts: Cash, Accounts Receivable, Equipment, Accounts Payable, Sam Roth, Capital, Sam Roth, Drawing, Fees Earned, Salary Expenses, and Utilities Expense.
On July 7, the company provided services to customers on account for $2,000. Indicate which account should be debited (1) and which account should be credited (2) for the $2,000 earned on account?
JOURNAL page 2
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
7/07/18
(1)
$2,000
(2)
$2,000
Group of answer choices
debit Cash; credit Fees Earned
debit Fees Earned; credit Cash
debit Accounts Receivable; credit Fees Earned
debit Fees Earned; credit Accounts Receivable
Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
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