EX 2-7 Transactions

Chalet Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Andee Freese, Capital; Andee Freese, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.

Journalize the following selected transactions for October 2012 in a two-column journal.
Journal entry explanations may be omitted.

Oct. 1.    Paid rent for the month, $2,000.
        2.    Paid advertising expense, $900.
        5.    Paid cash for supplies, $1,300.
        6.    Purchased office equipment on account, $16,000.
        10.  Received cash from customers on account, $6,700.
        15.  Paid creditor on account, $1,200.
        27.  Paid cash for repairs to office equipment, $600.
        30.  Paid telephone bill for the month, $180.
        31.  Fees earned and billed to customers for the month, $26,800.
        31.  Paid electricity bill for the month, $400.
        31.  Withdrew cash for personal use, $3,000.

Answer:
2012
Oct. 1 Rent Expense ...................................................... 2,000
                                Cash................................................................ 2,000
        2 Advertising Expense .......................................... 900
                                Cash................................................................ 900
        5 Supplies............................................................... 1,300
                                Cash................................................................ 1,300
        6 Office Equipment ................................................ 16,000
                                Accounts Payable.......................................... 16,000
        10 Cash..................................................................... 6,700
                                Accounts Receivable .................................... 6,700
        15 Accounts Payable ............................................... 1,200
                                Cash................................................................ 1,200
        27 Miscellaneous Expense...................................... 600
                                Cash................................................................ 600
        30 Utilities Expense ................................................. 180
                                Cash................................................................ 180
        31 Accounts Receivable.......................................... 26,800
                                Fees Earned ................................................... 26,800
        31 Utilities Expense ................................................. 400
                                Cash................................................................ 400
        31 Andee Freese, Drawing ...................................... 3,000
                                Cash................................................................ 3,000

EX 2-6 Normal balances of accounts

Identify each of the following accounts of Advanced Services Co. as asset, liability, owner’s equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit.
a. Accounts Payable
b. Accounts Receivable
c. Barbara Mallary, Capital
d. Barbara Mallary, Drawing
e. Cash
f. Fees Earned
g. Office Equipment
h. Rent Expense
i. Supplies
j. Wages Expense

Answer:
a. liability, credit
b. asset, debit
c. owner's equity, credit
d. owner's equity, dedit
e. asset, debit
f. revenue, credit
g. asset, debit
h. expense, debit
i. asset, debit
j. expense, debit