ACG HW ch2

Following are the transactions of Green Energy Company. May 1-The company provided $2,400 of sustainability consulting services on credit to a customer. May 3-The company purchased $500 of energy-efficient supplies on credit. May 9-The company collected $900 cash as partial payment of the May 1 consulting revenue. May 20-The company paid $500 cash toward the payable for energy-efficient supplies. May 31-The company paid $300 cash for May's renewable energy utilities.

may 1- accounts receivable: debit 2400 consulting revenue: credit 2400 may 3- supplies: debit 500 Accounts payable: credit 500 may 9- cash: debit 900 Accounts receivable: credit 900 may 20- accounts payable: debit 500 cash: credit 500 may 31- utilities expense: debit 300 cash: credit 300

Classify each of the following accounts as an Asset, Liability, or Equity account. a. dividends b. trucks c. common stock d. buildings e. unearned fees f. warehouse g. wages payable h. factory i. utilities payable

a. equity b. asset c. equity d. asset e. liability f. asset g. liability h. asset i. liability

For each of the following (1) identify the account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) select debit or credit to identify the kind of entry that would increase the account balance. a. equipment b. notes payable c. common stock d. supplies e. accounts payable f. consulting revenue g. salaries expense h. utilities expense i. prepaid rent j. wages receivable k. notes receivable l. land

a. type of account (asset) normal balance (debit) increase (debit) b. type of account (liability) normal balance (credit) increase (credit) c. type of account (equity) normal balance (credit) increase (credit) d. type of account (asset) normal balance (debit) increase (debit) e. type of account (liability) normal balance (credit) increase (credit) f. type of account (revenue) normal balance (credit) increase (credit) g. type of account (expense) normal balance (debit) increase (debit) h. type of account (expense) normal balance (debit) increase (debit) i. type of account (asset) normal balance (debit) increase (debit) j. type of account (liability) normal balance (credit) increase (credit) k. type of account (asset) normal balance (debit) increase (debit) l. type of account (asset) normal balance (debit) increase (debit)

Following are the transactions of a new company called Pose-for-Pics. August 1- Madison Harris, the owner, invested $13,250 cash and $56,975 of photography equipment in the company in exchange for common stock. August 2- The company paid $2,300 cash for an insurance policy covering the next 24 months. August 5- The company purchased supplies for $2,518 cash. August 20- The company received $3,150 cash from taking photos for customers. August 31-The company paid $881 cash for August utilities.

aug 1- cash debit $13,250, equipment debit $56,975, common stock credit $70,225 aug 2- prepaid insurance debit $2,300, cash credit $2,300 aug 5- supplies debit $2,518, cash credit $2,518 aug 20- cash debit $3,150, service revenue credit $3,150 aug 31- utilities expense debit $881, Cash credit $881