1-2Enter First & Last Name Before Starting Homework!!!!!Hide (Otherwise you'll have to do homework twice!!)0056 possibleFirst Name:CorrinneCeLast Name:Bailey RaeBeChapter:2 - Debits & Credits24NAME TABLESScore:0%24Exercise 1 Match the following definitions to the appropriate term:factor4a)Costs incurred to generate revenues (assets consumed or liabilities incurred to generate revenue)XDropdown ChoicesAnswRanDefinitionAnswerFeedbackb)Assets received for selling a product or performing a service.XAccounts PayableExpenses15Things of value the business owns (economic resources)Assetsc)Amounts you're owed by customersXAccounts ReceivableRevenues26Snapshot of company's financial position at a moment in timeBalance Sheetd)Amounts you owe suppliers and vendorsXAssetsAccounts Receivable37Shares of ownership issued in exchange for cash receivedCommon Stocke)Things of value the business owns (economic resources)XBalance SheetAccounts Payable48Shareholder's claim to assetsShareholder's Equityf)Snapshot of company's financial position at a moment in timeXCash Flow StatementAssets59Reports payments and receipts of cash by categoryCash Flow Statementg)Shares of ownership issued in exchange for cash receivedXCommon StockBalance Sheet610Income not distributed to shareholdersRetained Earningsh)Shareholder's claim to assetsXDividendsCommon Stock711Reports changes in undistributed earnings from net income and dividends.Retained Earnings Stmti)Reports payments and receipts of cash by categoryXExpensesShareholder's Equity812Distribution of assets to shareholdersDividendsj)Income not distributed to shareholdersXIncome StatementCash Flow Statement913Detailed accout of company's performance over period of timeIncome Statementk)Reports changes in undistributed earnings from net income and dividends.XLiabilitiesRetained Earnings1014Debts or obligations (creditor's claim to assets)Liabilitiesl)Distribution of assets to shareholdersXRetained EarningsRetained Earnings Stmt111Costs incurred to generate revenues (assets consumed or liabilities incurred to generate revenue)Expensesm)Detailed accout of company's performance over period of timeXRetained Earnings StmtDividends122Assets received for selling a product or performing a service.Revenuesn)Debts or obligations (creditor's claim to assets)XRevenuesIncome Statement133Amounts you're owed by customersAccounts ReceivableShareholder's EquityLiabilities144Amounts you owe suppliers and vendorsAccounts PayableTrial BalanceLeftAssignedRightAssignedExercise 2For each account, identify the type, normal balance (how you increase it), and on what financial statement it appears.a1a2AccountTypeNormal BalanceStatementDropdown ChoicesAnswAnswAnswRanAccountStatementTypeDr. /Cr.b2b4a)Service revenueXXXBalance SheetEquityIncome StatementCredit13Accounts payable (A/P)Balance SheetLiabilityCreditc2c4b)Unearned revenueXXXIncome StatementLiabilityBalance SheetCredit24Accounts receivable (A/R)Balance SheetAssetDebitd8d4 ...

1. 1-2Enter First & Last Name Before Starting Homework!!!!!Hide
(Otherwise you'll have to do homework twice!!)0056
possibleFirst Name:CorrinneCeLast Name:Bailey
RaeBeChapter:2 - Debits & Credits24NAME
TABLESScore:0%24Exercise 1 Match the following definitions
to the appropriate term:factor4a)Costs incurred to generate
revenues (assets consumed or liabilities incurred to generate
revenue)XDropdown
ChoicesAnswRanDefinitionAnswerFeedbackb)Assets received
for selling a product or performing a service.XAccounts
PayableExpenses15Things of value the business owns
(economic resources)Assetsc)Amounts you're owed by
customersXAccounts ReceivableRevenues26Snapshot of
company's financial position at a moment in timeBalance
Sheetd)Amounts you owe suppliers and
vendorsXAssetsAccounts Receivable37Shares of ownership
issued in exchange for cash receivedCommon Stocke)Things of
value the business owns (economic resources)XBalance
SheetAccounts Payable48Shareholder's claim to
assetsShareholder's Equityf)Snapshot of company's financial
position at a moment in timeXCash Flow
StatementAssets59Reports payments and receipts of cash by
categoryCash Flow Statementg)Shares of ownership issued in
exchange for cash receivedXCommon StockBalance
Sheet610Income not distributed to shareholdersRetained
Earningsh)Shareholder's claim to assetsXDividendsCommon
Stock711Reports changes in undistributed earnings from net
income and dividends.Retained Earnings Stmti)Reports
payments and receipts of cash by
categoryXExpensesShareholder's Equity812Distribution of
assets to shareholdersDividendsj)Income not distributed to
shareholdersXIncome StatementCash Flow
Statement913Detailed accout of company's performance over
period of timeIncome Statementk)Reports changes in

2. undistributed earnings from net income and
dividends.XLiabilitiesRetained Earnings1014Debts or
obligations (creditor's claim to assets)Liabilitiesl)Distribution
of assets to shareholdersXRetained EarningsRetained Earnings
Stmt111Costs incurred to generate revenues (assets consumed
or liabilities incurred to generate revenue)Expensesm)Detailed
accout of company's performance over period of timeXRetained
Earnings StmtDividends122Assets received for selling a product
or performing a service.Revenuesn)Debts or obligations
(creditor's claim to assets)XRevenuesIncome
Statement133Amounts you're owed by customersAccounts
ReceivableShareholder's EquityLiabilities144Amounts you owe
suppliers and vendorsAccounts PayableTrial
BalanceLeftAssignedRightAssignedExercise 2For each account,
identify the type, normal balance (how you increase it), and on
what financial statement it appears.a1a2AccountTypeNormal
BalanceStatementDropdown
ChoicesAnswAnswAnswRanAccountStatementTypeDr.
/Cr.b2b4a)Service revenueXXXBalance SheetEquityIncome
StatementCredit13Accounts payable (A/P)Balance
SheetLiabilityCreditc2c4b)Unearned revenueXXXIncome
StatementLiabilityBalance SheetCredit24Accounts receivable
(A/R)Balance SheetAssetDebitd8d4c)Accounts payable
(A/P)XXXRetained EarningsLiabilityBalance
SheetCredit35CashBalance SheetAssetDebite9e4d)Accounts
receivable (A/R)XXXAssetBalance SheetDebit46Common
stockBalance
SheetEquityCreditf2f5e)CashXXXDebitAssetBalance
SheetDebit57DividendsRetained
EarningsEquityDebitg3g5f)Common
stockXXXCreditEquityBalance SheetCredit68EquipmentBalance
SheetAssetDebith3h5g)DividendsXXXEquityRetained
EarningsDebit79Insurance expenseIncome
StatementEquityDebith)EquipmentXXXAssetAssetBalance
SheetDebit810Office suppliesBalance
SheetAssetDebiti)Insurance expenseXXXLiabilityEquityIncome

3. StatementDebit911Prepaid rentBalance SheetAssetDebitj)Office
suppliesXXXEquityAssetBalance SheetDebit1012Rent
expenseIncome StatementEquityDebitk)Prepaid
rentXXXAssetBalance SheetDebit1113Repair expenseIncome
StatementEquityDebitl)Rent expenseXXXEquityIncome
StatementDebit1214Retained earningsBalance
SheetEquityCreditm)Repair expenseXXXEquityIncome
StatementDebit131Service revenueIncome
StatementEquityCreditn)Retained earningsXXXEquityBalance
SheetCredit142Unearned revenueBalance
SheetLiabilityCrediti3i5* Retained earnings also appears on the
retained earnings statement.j4j6k4k6Accounts payable
(A/P)l5l6Accounts receivable (A/R)m5m6Cashn5n1Common
stocko6o7Dividendsp6p7Equipmentq6q7Insurance
expenser6r7Office suppliess7s8Postage expenset7t8Prepaid
rentu7u8Rent expensev8v8Repair expensew8w9Retained
earningsx8x9Service revenuey9y3Unearned revenueUtilities
expense33z9z3
3014 possfactor4Exercise 3 Given the following transactions,
should you debit or credit the
account?TransactionDebit/CreditFeedbackDropdown
ChoicesAnswFeedbackRanTransactionDr./Cr.Feedbacka)Increas
e utilty expenseDebitExpenses are debited15To increase
landDebitLand is an asset and increases as a dr. b)Decrease
prepaid rentCreditPrepaid rent is an asset 26To increase
A/PCreditA/P is a liability and increases with a cr.c)To increase
unearned revenueCreditUnearned revenue is a liability37To
increase dividendsDebitDividends are debitedd)Increase
common stockCreditCommon stock increases with a cr.48To
decrease cashCreditCash is an asset and decreases are cr.e)To
increase landDebitDebitLand is an asset and increases as a dr.
59To increase prepaid rentDebitPrepaid rent is an asset f)To
increase A/PCreditCreditA/P is a liability and increases with a
cr.610To increase service revenueCreditRevenues are
creditedg)To increase dividendsDebitDividends are
debited711To decrease A/PDebitA/P is a liability and decreases

4. with dr.h)To decrease cashCreditCash is an asset and decreases
are cr.812To increase cashDebitCash is an asset i)To increase
prepaid rentDebitPrepaid rent is an asset 913Increase
equipmentDebitEquipment is an assetj)To increase service
revenueCreditRevenues are credited1014Decrease wages
payableDebitWages payable is a liability k)To decrease
A/PDebitA/P is a liability and decreases with dr.111Increase
utilty expenseDebitExpenses are debitedl)To increase
cashDebitCash is an asset 122Decrease prepaid
rentCreditPrepaid rent is an asset m)Increase
equipmentDebitEquipment is an asset133To increase unearned
revenueCreditUnearned revenue is a liabilityn)Decrease wages
payableDebitWages payable is a liability 144Increase common
stockCreditCommon stock increases with a cr.
4Exercise 4 Journalize the following transactions for Joel
Company.040 possJoel Co. paid $40 to its
shareholdersFactor2RanNominalAdjustedDr.Cr.General
JournalAccounts payable (A/P)13Joel Co. bought $20 of office
supplies on account from Office Depot invoice#
31351020Office supplies Accounts payable
(A/P)DateAccount/ExplanationPRDebitCredit Accounts
payable (A/P)24Joel Co. performed $160 services for Client Co.
on account invoice #12380160Accounts receivable (A/R)
Service revenueMay1XXDividends40Accounts receivable
(A/R)35Joel Co. received invoice # 8329 for $ 60 from PG&E
for this month's utilities3060Utilities expense Accounts
payable (A/P)XX Cash40 Accounts receivable
(A/R)46Joel Co. issued check #359 to Luf Co. to purchase $400
of equipment200400Equipment CashXCash57Joel Co. paid
$80 (ck# 365) to Allstate for 6 months insurance4080Prepaid
insurance Cash Cash68Joel Co. received $180 for
services performed for Customer Co.90180Cash Service
revenueJoel Co. received $140 from Buyer Co. for services it
will perform next monthCommon stock71Joel Co. paid $40 to
its shareholders2040Dividends Cash Common
stock82Joel Co. received $140 from Buyer Co. for services it

5. will perform next month70140Cash Unearned
revenueGeneral
JournalDividendsDateAccount/ExplanationPRDebitCredit
Dividends0May2XXCash140Equipment0XX Unearned
revenue140 Equipment0XInsurance expense Insurance
expenseJoel Co. bought $20 of office supplies on account from
Office Depot invoice# 3135Office supplies Office
suppliesGeneral JournalPrepaid
insuranceDateAccount/ExplanationPRDebitCredit Prepaid
insuranceMay3XXOffice supplies20Prepaid rentXX
Accounts payable (A/P)20 Prepaid rentXRent expense
Rent expenseJoel Co. performed $160 services for Client Co. on
account invoice #123Repair expense Repair expenseGeneral
JournalService revenueDateAccount/ExplanationPRDebitCredit
Service revenueMay4XXAccounts receivable
(A/R)160Unearned revenueXX Service revenue160
Unearned revenueXUtilities expense Utilities expenseJoel
Co. received invoice # 8329 for $ 60 from PG&E for this
month's utilitiesGeneral
JournalDateAccount/ExplanationPRDebitCreditMay5XXUtilitie
s expense60XX Accounts payable (A/P)60XJoel Co. issued
check #359 to Luf Co. to purchase $400 of equipmentGeneral
JournalDateAccount/ExplanationPRDebitCreditMay6XXEquipm
ent400XX Cash400XJoel Co. paid $80 (ck# 365) to Allstate
for 6 months insuranceGeneral
JournalDateAccount/ExplanationPRDebitCreditMay7XXPrepaid
insurance80XX Cash80XJoel Co. received $180 for services
performed for Customer Co.General
JournalDateAccount/ExplanationPRDebitCreditMay8XXCash18
0XX Service revenue180X
50035 possibleExercise 5Prepare financial statements for
Consulting Corp. given the following account
balances.0factor2factorList expenses in alphabetical order and
assets in order of
liquidity.nominaladjustedSignA/P2040A/P40Legal Expense2047
possibleA/R3060A/R60Loan

6. Payable240Building200400Building400Prepaid
Insurance50Cash1530Cash30Rent Expense40Common
Stock65130Common Stock130Retained Earnings
1/1/0X100Consulting Revenue120240Consulting
Revenue240Unearned
Revenue60Dividends3060Dividends60Wage
Expense20Equipment80160Equipment160Wages
Payable60Insurance Expense1530Insurance Expense30Legal
Expense1020Loan Payable120240Consulting Corp.Net
Income65130Income StatementPrepaid Insurance2550Year
Ending 200XRent Expense2040Retained Earnings
1/1/0X50100RevenueHide-VlookupRetained Earnings 12/31/0X-
0XX-1Unearned Revenue3060ExpensesWage Expense1020XX-
1Wages Payable3060XX-1XX-1A/PXX-1A/RTotal ExpensesX-
4BuildingXX-1CashRevenueCommon StockConsulting
Revenue120.00240.00Consulting Corp.Consulting
RevenueExpensesRetained Earnings
StatementDividendsInsurance Expense15.0030.00Year Ending
200XEquipmentLegal Expense10.0020.00Insurance
ExpenseRent Expense20.0040.00XX-1Legal ExpenseWage
Expense10.0020.00+XX-1Loan PayableTotal
Expenses55.00110.00-XX-1Net IncomeNet
Income65.00130.00=XX-3Prepaid InsuranceRent
ExpenseConsulting Corp.Retained Earnings 1/1/0XRetained
Earnings 1/1/0X50.00100.00Balance SheetRetained Earnings
12/31/0XNet Income65.00130.0012/31/0XUnearned
RevenueDividends(30)(60)Wage ExpenseRetained Earnings
12/31/0X85170AssetsWages PayableXX-1AssetsXX-
1Cash15.0030.00XX-1A/R30.0060.00XX-1Prepaid
Insurance25.0050.00XX-1Equipment80.00160.00Total AssetsX-
5Building200.00400.00Total Assets350.00700.00LiabilitiesXX-
1LiabilitiesXX-1A/P20.0040.00XX-1Wages
Payable30.0060.00XX-1Unearned Revenue30.0060.00Total
LiabilitiesX-4Loan Payable120.00240.00Total
Liabilities200.00400.00Shareholder's EquityEquityXX-
1Common Stock65.00130.00XX-3Retained Earnings

7. 12/31/0X85.00170.00Total Shareholder's EquityX-4Total
Equity150.00300.00Total Liabilities & EquityX-8Total
Liabilities & Equity350.00700.00
6Exercise 6 Record the appropriate journal entry for each
transaction.036
possibleFactor4RanNominalAdjustedDr.Cr.FeedbackGeneral
JournalAccounts payable (A/P)15(Paid 3 months rent in advance
of $120 to L Co.)30120Prepaid rent
CashDateAccount/ExplanationPRDebitCredit Accounts
payable (A/P)26(Performed services for D Co. and received
payment of $200)50200Cash Service
revenueJan1XXAccounts receivable (A/R)160Accounts
receivable (A/R)37(Purchased $160 machinery on account from
Y Co.)40160Machinery Accounts payable (A/P)XX
Service revenue160 Accounts receivable (A/R)48(Issued
checks to shareholders totaling $100)25100Dividends
Cash(Performed $160 of services on account for P
Co.)Advertising expense59(Paid $140 on account (amount owed
suppliers))35140Accounts payable (A/P) Cash
Advertising expense61(Performed $160 of services on account
for P Co.)40160Accounts receivable (A/R) Service
revenueJan2XXTelephone expense40Cash72(Received a $40
invoice from AT&T for this month's phone
service)1040Telephone expense Accounts payable (A/P)XX
Accounts payable (A/P)40 Cash83(Received $240 payment
from E Co. (for work done last month))60240Cash Accounts
receivable (A/R)(Received a $40 invoice from AT&T for this
month's phone service)Common stock94(Issued a $80 check to
Paper Co. for ads run this month)2080Advertising expense
Cash Common stockJan3XXCash240DividendsXX
Accounts receivable (A/R)240 Dividends(Received $240
payment from E Co. (for work done last month))Machinery
MachineryJan4XXAdvertising expense80Prepaid rentXX
Cash80 Prepaid rent(Issued a $80 check to Paper Co. for ads
run this month)Rent expense Rent expenseJan5XXPrepaid
rent120Repair expenseXX Cash120 Repair expense(Paid

8. 3 months rent in advance of $120 to L Co.)Service revenue
Service revenueJan6XXCash200SuppliesXX Service
revenue200 Supplies expense(Performed services for D Co.
and received payment of $200)Telephone expense
Telephone expenseJan7XXMachinery160Unearned revenueXX
Accounts payable (A/P)160 Unearned revenue(Purchased
$160 machinery on account from Y
Co.)Jan8XXDividends100XX Cash100(Issued checks to
shareholders totaling $100)Jan9XXAccounts payable
(A/P)140XX Cash140(Paid $140 on account (amount owed
suppliers))
7Exercise 7Given the following information calculate each
company's debt ratio and return on assets (ROA).018
possibleFactor4Larry Co.Curly Co.Mo Co.Larry Co.Curly
Co.Mo Co.Larry Co.Curly Co.Mo
Co.Revenues12020080Revenues30502012020080Expenses80180
40Expenses2045108018040NI10510402040Total
Assets800720480Total Assets200180120800720480Total
Liabilities40061296Total Liabilities1001532440061296Average
Assets1,000800400Average Assets2502001001000800400Debt
RatioXXXDebt Ratio50.0%85.0%20.0%50.00%85%20%Return
on AssetsXXXReturn on
Assets4.0%2.5%10.0%4.00%2.5%10.0%Which company is most
highly leveraged (relies most on creditor financing)?XLarry
Co.Curly Co.Which company relies most heavily on equity
financing?Mo Co.XWhich company most effectively utilizes its
assets?X
8Exercise 8 Record the appropriate journal entry for each
transaction.044
possibleFactor4RanNominalAdjustedDr.Cr.FeedbackGeneral
JournalAccounts payable (A/P)11(Stu Pidman invested $4000 to
start Delivery Corp. (DC) )1,0004,000Cash Common
stockDateAccount/ExplanationPRDebitCredit Accounts
payable (A/P)22(DC purchased a used van for $3600 by issuing
check #101)9003,600Van (delivery equipment)
CashAug1XXCash4000Accounts receivable (A/R)33(DC

9. purchased $400 supplies on account from Supply
Co.)100400Supplies Accounts payable (A/P)XX
Common stock4000 Accounts receivable (A/R)44(DC
delivered goods to Shady Co. and received
$20000)5,00020,000Cash Delivery Revenue(Stu Pidman
invested $4000 to start Delivery Corp. (DC) )Cash55(DC paid
$40 to buy gasoline for the van.)1040Fuel (gas) expense
Cash Cash66(DC delivered goods to Legit Co. and billed
them $1200)3001,200Accounts receivable (A/R) Delivery
RevenueAug2XXVan (delivery equipment)3600Common
stock77(DC received a $2000 invoice from Mafia Co. for
monthly 'security')5002,000Security expense Accounts
payable (A/P)XX Cash3600 Common stock88(DC made
a delivery to Scary Co. and received $24000)6,00024,000Cash
Delivery Revenue(DC purchased a used van for $3600 by
issuing check #101)Delivery revenue99(DC paid $400 on
account - for suppies purchased 8/3)100400Accounts payable
(A/P) Cash Delivery Revenue1010(DC received $1200
from Legit Co. on account - from 8/6)3001,200Cash
Accounts receivable (A/R)Aug3XXSupplies400Fuel (gas)
expense1111(DC received a $1600 invoice from Law Co. for
legal advice)4001,600Legal expense Accounts payable
(A/P)XX Accounts payable (A/P)400 Fuel (gas)
expense(DC purchased $400 supplies on account from Supply
Co.)Legal expense Legal
expenseAug4XXCash20000Security expenseXX Delivery
Revenue20000 Security expense(DC delivered goods to
Shady Co. and received $20000)Supplies Supplies
expenseAug5XXFuel (gas) expense40Telephone expenseXX
Cash40 Telephone expense(DC paid $40 to buy gasoline for
the van.)Unearned revenue Unearned
revenueAug6XXAccounts receivable (A/R)1200Van (delivery
equipment)XX Delivery Revenue1200 Van (delivery
equipment)(DC delivered goods to Legit Co. and billed them
$1200)Aug7XXSecurity expense2000XX Accounts payable
(A/P)2000(DC received a $2000 invoice from Mafia Co. for

10. monthly 'security')Aug8XXCash24000XX Delivery
Revenue24000(DC made a delivery to Scary Co. and received
$24000)Aug9XXAccounts payable (A/P)400XX
Cash400(DC paid $400 on account - for suppies purchased
8/3)Aug10XXCash1200XX Accounts receivable
(A/R)1200(DC received $1200 from Legit Co. on account - from
8/6)Aug11XXLegal expense1600XX Accounts payable
(A/P)1600(DC received a $1600 invoice from Law Co. for legal
advice)
90035 possibleExercise 9Prepare financial statements for Yo
Corp. given the following account balances.0factor4factorList
expenses in alphabetical order and assets in order of
liquidity.nominaladjustedSign33 possibleA/P520A/P20Rent
Expense1647 possibleA/R1040A/R40Retained Earnings
1/1/0X40Advertising Expense28Advertising Expense8Service
Revenue200Cash1352Cash52Supplies20Common
Stock312Common Stock12Supplies
Expense12Dividends14Dividends4Unearned
Revenue32Machine40160Machine160Wage Expense48Net
Income29.00116Note Payable60Wages Payable4Note
Payable1560Prepaid Rent8Prepaid Rent28Rent Expense416Yo
Corp.Retained Earnings 1/1/0X1040Income StatementRetained
Earnings 12/31/0X- 0Year Ending 200XService
Revenue50200Supplies520RevenueHide-VlookupSupplies
Expense312XX-1Unearned Revenue832ExpensesWage
Expense1248XX-1Wages Payable14XX-1XX-1A/PXX-
1A/RTotal ExpensesX-4Advertising ExpenseXX-
1CashRevenueCommon StockService Revenue50.00200.00Yo
Corp.DividendsExpenses- 0Retained Earnings
StatementMachineAdvertising Expense2.008.00Year Ending
200XNet IncomeRent Expense4.0016.00Note PayableSupplies
Expense3.0012.00XX-1Prepaid RentWage
Expense12.0048.00+XX-1Rent ExpenseTotal
Expenses21.0084.00-XX-1Retained Earnings 1/1/0XNet
Income29.00116.00=XX-3Retained Earnings 12/31/0X-
0Service Revenue- 0Yo Corp.SuppliesRetained Earnings

11. 1/1/0X10.0040.00Balance SheetSupplies ExpenseNet
Income29.00116.0012/31/0XUnearned
RevenueDividends(1)(4.00)Wage ExpenseRetained Earnings
12/31/0X38152.00AssetsWages Payable- 0XX-1Assets- 0XX-
1Cash13.0052.00XX-1A/R10.0040.00XX-
1Machine40.00160.00XX-1Prepaid Rent2.008.00Total AssetsX-
5Supplies5.0020.00Total Assets70.00280.00Liabilities- 0XX-
1Liabilities- 0XX-1A/P5.0020.00XX-1Wages
Payable1.004.00XX-1Unearned Revenue8.0032.00Total
LiabilitiesX-4Note Payable15.0060.00Total
Liabilities29.00116.00Shareholder's EquityEquity- 0XX-
1Common Stock3.0012.00XX-3Retained Earnings
12/31/0X38.00152.00Total Shareholder's EquityX-4Total
Equity41.00164.00Total Liabilities & EquityX-8Total
Liabilities & Equity70.00280.00