Applying the Rules of Debit and Credit Speedy Appliance Repair, owned by R. Lewis, uses

Applying the Rules of Debit and Credit Speedy Appliance Repair, owned by R. Lewis, uses the following accounts: Instructions In the form provided in your working papers: 1. Classify each account as an asset, liability, or owner’s capital account. 2. Indicate whether the increased side is a debit or a credit. 3. Indicate whether the decrease side is a debit or credit. 4. Indicate whether the normal balance for the account is a debit or credit balance. The Cash in Bank account is completed as an example.

Identifying Increases and Decreases in Accounts Alice Roberts uses the following accounts in her business: Instructions Analyze each of the following transactions. In your working papers, explain the debit and the credit. Use the format shown in the example. Example: On June 2 Alice Roberts invested $5,000 of her own money in a business called Roberts Employment Agency. a.The asset account Cash in Bank is increased. Increases in asset accounts are recorded as debits. b.The owner’s capital account Alice Roberts, Capital is increased. Increases in the owner’s capital account are recorded as credits.

Chart of Accounts a. What is a chart of accounts? b. Why are the accounts numbered?

Double-Entry Accounting a. What is double-entry accounting? b. Define the terms debit and credit.

Normal Balances a. What is meant by the term normal balance? b. What is the normal balance for asset accounts? For liability accounts? For the owner’s capital account?

T Accounts a. What is the purpose of a T account? b. Name the three basic parts of a T account.

Transaction Analysis a. What are the six steps used to analyze a business transaction? b. Explain briefly what is meant by the following phrase: A debit of $100 to Cash in Bank

Account Balances a. How do you determine the balance of an account? b. The following information is for the Cash in Bank account on a single day. What is the balance of Cash in Bank at the end of the day? Beginning balance: $3,000 debit Transactions: $450 credit $1,275 credit $1,800 debit

Identifying Accounts Affected by Transactions Ronald Hicks owns Wilderness Rentals and uses the following accounts in his business: Instructions For each of the following transactions: 1. Indicate the two accounts affected. 2. Indicate whether each account is debited or credited.

Using T Accounts toAnalyze Transactions Regina Delgado owns a business called Hot Suds Car Wash. She uses the following accounts: Instructions For each transaction: 1. Determine which accounts are affected. 2. Prepare T accounts for the accounts affected. 3. Enter the debit and credit amounts in the T accounts. Calculate the ending balance for the liability account Accounts Payable—Allen Vacuum Systems.

Analysing Transactions into Debit and Credit Parts Abe Shultz owns Kits & Pups Grooming and uses the following accounts: Instructions. For each transaction: 1. In your working papers, prepare a T account for each account listed. 2. Using the appropriate T accounts, analyse and record each of the following business transactions. Identify each transaction by number. 3. After recording all transactions, write the word Balance on the normal balance side of each T account. Then compute and record the balance for each account. Calculate the total cash spent in the month of May.

Analysing Transactions into Debit and Credit Parts Juanita Ortega runs Outback Guide Service. The accounts she uses to record and report business transactions are listed below. Instructions For each transaction: 1. In your working papers, prepare a T account for each account. 2. Analyze and record each of the following business transactions in the appropriate T accounts. Identify each transaction by number. 3. After recording all transactions, compute and record the account balance on the normal balance side of each T account. 4. Add the balances of those accounts with normal debit balances. 5. Add the balances of those accounts with normal credit balances. 6. Compare the two totals. Are they the same? Analyze Calculate the ending balance in the Computer Equipment account.

Analyzing Transactions Recorded in T Accounts Richard Tang owns and operates a job placement service, Job Connect. The T accounts below summarize several business transactions for May. Instructions Use a form similar to the one presented below. For each of the 10 transactions: 1. Identify the account debited, and record the account name in the appropriate column. 2. Indicate whether the account debited is being increased or decreased. 3. Identify the account credited, and write the account name in the appropriate column. 4. Indicate whether the account credited is being increased or decreased. 5. Write a short description of the transaction. Design a diagram that shows the accounting equation for Job Connect after all transactions have been completed.