label each item as an asset (A), liability (L), revenue (R) equity (EQ)

Subject: Business    / Accounting
Question

Instructions for the first two: label each item as an asset (A), liability (L), revenue (R) equity (EQ)

1.

Cash

Prepaid Rent

Office Supplies

Prepaid Insurance

Office Equipment

Owner’s Capital

Accounts Payable

Unearned Rent Revenue

Owner’s Withdrawals

2.

Advertising Expense

Rent Revenue

Rent Receivable

Patents

Rent Payable

Furniture

Notes Payable

Owner, Capital

Utilities Expense

3. What would be the normal ending balance for each item? Debit or Credit

Fees earned

Office Supplies

Owner, Withdrawals

Wages Expense

Accounts Receivable

Prepaid Rent

Wages Payable

Building

Owner, Capital

4. Fill in the journal entries for this scenario.

Aug 1. Dak Prescott, the owner, invested $10,000 cash and $43,000 of photography equipment in the company.
Aug 2 The company paid $2,200 cash for an insurance plicy covering the next 24 months.
Aug 5 The company purchased office supplies for $1,900 cash.
Aug 20 The company received $3,450 cash in photography fees earned
Aug 31 The company paid $869 cash for August utilities.

Date

General Journal

Debit

Credit

Aug 01

Aug 02

Aug 05

Aug 20

Aug 31

5. Tony Romo operates a consulting firm called Not Today, which operations on August 1. On August 31, the ocmpnay’s records show the following accounts and amoutns for the monhth of August.

Cash

$ 25,300

C. Camry Withdrawals

$ 5,940

Accounts Receivable

22,310

Consulting fees earned

26,940

Office Supplies

5,190

Rent Expense

9,490

Land

43,960

Salaries Expense

5,550

Office equipment

19,940

Telphone expense

800

Accounts payable

10,800

Miscellaneous expenses

460

With information provided prepare and August statement of Owners equity for Help Today; begin with Tony Romo, Capital July 31 of $0 (The owner invested $101,200 cash in the company on August1.) Hint: prepare an income statement to help you with the statement of Owners equity.

6. Prestige Company has total assets of $1,125,000, liabilities of $450,000, and equity of $675,000. What is its debt ratio.

A. 250%

B. 67%

C. 40%

D. 150%

7. Jason Garett received its utility bill for the current period of $700 and immediately paid it. Its journal entry to record this transaction includes a

a. Credit to Utility Expense for $700

b. Debit to utility expense for $700

c. Debit to Accounts Payable for $700

d. Debit to Cash for $700

e. Credit to capital for $700