Question

ICO act.pearsoncmg.com/test-out/2 Your work will be saved as you work through each 2 PI ed civi nt Review the transactions and determine the accounts, the account types (use assets, liabilities, common stock, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. List accounts in order they would be in the journal entry. Collected cash for services Account 1 Increase/Decrease Debit/Credit cash Increase Debit lo Account #2 Account Type Increase/Decrease Debit/Credit service revenue revenue Increase Credit Purchased office supplies on account

Answer 1

Review Collected Cash for Services Dr. Journal Enteries Date Particulars Nov-03 Truck a/c To Note Payable (Truck purchased) Debit in $ Credit in $ 9000 9000 Account #1 Cash Account #2 Service Revenue Account Type Increase / Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Revenue Increase Credit Nov-04 9000 Purchased Office Supplies on Account Cash a/c Dr. To Common Stock (Common stock issued for cash) 9000 5000 Account #1 Office Supplies Account # 2 Accounts Payable Account Type Increase / Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Liabilities increase Credit Nov-05 Land a/c Dr. To Cash (Land purchased for cash) 5000 Provided Services on Account Dr. 5000 Nov-05 Prepaid Rent a/c To Cash (Rent prepaid) 5000 Account #1 Accounts Receivable Account #2 Service Revenue Account Type Increase/Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Revenue Increase Credit 7000 Nov-05 Note Payable a/c Dr. To Cash (Cash paid on Note Payable) 7000 Collected Cash for Future Services Account #1 Cash Account #2 Unearned Service Revenue Account Type Increase / Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Liabilities Increase Credit Received Cash on account from a customer Account #1 Cash Account #2 Accounts Receivable Account Type Increase / Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Asset Decrease Credit