business communication

Chp 1 Accounting Equation 1. Determine the missing amount for each of the following:

Assets
Liabilities
Owner's Equity
(a)
$18,000
$ 11,000
$50,000
(b)
$ 28,000
$35,000
$ 7,000
(c)

Categories/classes of accounts 2. . Indicate whether each of the following represents an asset, liability, or owner's equity/Capital:

(a) accounts payable/Creditors
(b)
wages expense
(c)
capital
(d)
accounts receivable/Debtors
(e)
withdrawal
(f)
Land
g. prepaid insurance unearned revenue
g. prepaid insurance

3. Identify each of the following as an (1) increase in CAPITAL/owner's equity, or a (2) decrease in CAPITAL/owner's equity

(a)
Fees Earned
(b)
Wages Expense
(c)
Withdrawal
(d)
Lawn Care Revenue
(e)
Investment
(f)
Supplies Expense

4. From the following list of accounts taken from Benson's accounting records, identify those that would appear on the Income Statement.

(a)
Rent Expense
(b)
Land
(c)
Capital
(d)
Fees Earned
(e)
Withdrawal
(f)
Wages Expense
(g)
Investment

5. INSTRUCTIONS: Indicate the effect of each of the following transactions for the current month on assets liabilities, and owner’s equity by inserting “+” for increase and “–” for decrease in the appropriate columns at the right.

Answers

A
L
OE/Capital 0. Received cash from owner as original investment
+

+ 1. Received cash for product sold

2. Purchased equipment for cash

3. Paid utilities for month

4. Paid creditors on account

5. Received cash for product sold to cash customers

6. Purchased land by signing a nine-month, non-interest-bearing note payable

7. Charged customers for product sold on account

8. Paid miscellaneous expenses

9. Paid first installment due on the non-interest-bearing note payable

10. Purchased office supplies on account

11. Paid cash to owner on withdrawal