HW 1 answers

EXERCISE 1:
CL Accounts payable
CA Accounts receivable
PPE Accumulated depreciation –
Equipment
PPE Buildings
CA Cash
CL Interest payable
IA Goodwill
CL Income taxes payable
CA Inventory
LTI Investments
PPE Land
LTL Mortgage payable
CA Supplies
PPE Equipment
CA Prepaid rent

EXERCISE 2:
Account
Debit or Credit
Financial Statement
Accounts Payable
Credit
Balance Sheet
Accounts Receivable
Debit
Balance Sheet
Common Stock
Credit
Balance Sheet
Depreciation Expense
Debit
Income Statement
Interest Expense
Debit
Income Statement
Interest Income
Credit
Income Statement
Inventories
Debit
Balance Sheet
Prepaid Expenses
Debit
Balance Sheet
Property and Equipments
Debit
Balance Sheet
Revenues
Credit
Income Statement

EXERCISE 3:
Pocras Company:
Account Description
Debit
Credit
Merchandise Inventory
900

Accounts Payable

900

Wedell Company:
Account Description
Debit
Credit
Accounts Receivable
900

Sales

900

Costs of Goods Sold
590

Merchandise Inventory

590

EXERCISE 4:
(a), (c) & (e)

Cash
11/1 Bal. 2,790
11/10 1,800
11/12 1,700
11/29 750 11/8 1,220 11/20 2,500 11/22 480 11/25 1,000
11/30 Bal. 1,840

Accounts Receivable
11/1 Bal. 2,910
11/27 900 11/10 1,800
11/30 Bal. 2,010

Supplies
11/1 Bal. 1,120
11/17 1,300 11/30 1,320
11/30 Bal. 1,100

Store Equipment
11/1 Bal. 10,000
11/15 3,600

11/30 Bal. 13,600

Accumulated Depreciation

11/1 Bal. 500 11/30 250

11/30 Bal. 750

Accounts Payable
11/20 2,500 11/1 Bal. 2,300 11/15 3,600 11/17 1,300

11/30 Bal. 4,700

Unearned
Service Revenue
11/30 500 11/1 Bal. 400 11/29 750

11/30 Bal. 650

Salaries Payable
11/8 620 11/1 Bal. 620 11/30 480

11/30 Bal. 480

Common Stock

11/1 Bal. 10,000

11/30 Bal. 10,000

Retained Earnings

11/1 Bal. 3,000

11/30 Bal. 3,000

Service Revenue

11/12 1,700 11/27 900 11/30 500

11/30 Bal. 3,100

Depreciation Expense
11/30 250

11/30 Bal. 250

Supplies Expense
11/30