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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

R. Dalberg operates Dalberg’s Tours. The company has the following chart of accounts:

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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.)

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  1. a. Received and paid the electric bill, $175.
  2. b. Bought supplies on account, $135.
  3. c. Paid for insurance for one year, $580.
  4. d. Made a payment on account to a creditor, $65.
  5. e. Received and paid the telephone bill, $186.
  6. f. Sold services on account, $1,375.
  7. g. Received and paid the gasoline bill for the van, $130.
  8. h. Received cash on account from customers, $1,458.
  9. i. Dalberg withdrew cash for personal use, $700.

To determine

Record the transactions in Pairs of T-accounts and show debit, credit, plus and minus signs.

Explanation

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

Record the transactions in pairs of T-accounts:

a. Received and paid the electric bill, $175.

This transaction results in an increase to utilities expense with a debit and a decrease to cash with a credit.

b. Bought supplies on account, $135.

This transaction results in an increase to supplies with a debit and a decrease to accounts payable with a credit.

c. Paid for insurance for one year, $580.

This transaction results in an increase to prepaid insurance with a debit and a decrease to cash with a credit.

d. Made a payment on account to a creditor, $65.

This transaction results in an increase to accounts payable with a debit and a decrease to cash with a credit.

e...

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