Entry

Practice 2-1 (Solution)
Complete the matrix by entering either debit or credit in each cell: Items | Increases | Decreases | Assets | Debit | Credit | Liabilities | Credit | Debit | Owner’s Equity | Credit | Debit | Revenues | Credit | Debit | Expenses | Debit | Credit |

Practice 2-2 (Solution)
State whether the following have debit balances or credit balances:

a.) Accounts Payable- Credit balance
b.) Salary Expense- Debit balance
c.) Notes Receivable- Debit balance
d.) Mr. Asuncion, Capital- Credit balance
e.) Cash- Debit balance
f.) Mr. Asuncion, Drawing- Debit balance
g.) Furniture and Fixtures- Debit balance
h.) Rent Expense- Debit balance
i.) Service Income- Credit balance
j.) Building- Debit balance

Practice 2-3 (Solution)
May Gomez… April 1 Cash 50,000 Cars 750,000 Gomez, capital 800,000

7 Furniture & Fixtures 45,000 Cash 45,000

21 Cash 15,000 Service Income 15,000

24 Accounts Receivable 16,000 Service Income 16,000

30 Cash 16,000 Accounts Receivable 16,000

31 Rent Expense 10,000 Salaries Expense 9,000 Cash 19,000

Practice 2-4 (Solution)
Ignacio Day Care Center…
Cash Furniture & Fixtures Nursery Toys&Books 200,000 50,000 50,000 25,000 55,000 18,000 10,000 10,000 5,000
P182,000

Ignacio, capital Accounts Payable Day Care Fees Income

200,000 25,000 65,000

Salaries Expense Advertising Expense Rent Expense 18,000 5,000 10,000

Accounts Receivable

10,000 10,000

Practice 2-5 (Solution) a. Feb. 1 Cash 6,000 Accounts receivable 6,000

12 Supplies 2,000 Account payable 2,000

14 Donation 7,000 Cash 7,000