Answer: Type of Account Normal Balance Asset Liability Equity Credit A. X X B. X X C. X X D. X X E. X X F. X X G. X X H. X X I. X X J. X X Blooms Taxonomy: Apply AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 2 Medium Learning Objective: 02-C4 Topic: Debit Topic: Credit Topic: Account Balance [Question] 167. Barton began Barton Office Services in October and during the month completed the following transactions: a. Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock. b. Paid $500 cash for an insurance premium covering the next 12 months. c. Completed a word processing assignment for a customer and collected $1,000 cash. d. Paid $200 cash for office supplies. e. Paid $2,000 for October's rent. Prepare journal entries to record the above transactions. Explanations are unnecessary. Answer: a. Cash 10,000 Computer Equipment 15,000 Common 25,000 b. Prepaid Insurance 500 Cash 500 c. Cash 1,000
Answer: Type of Account Normal Balance Asset Liability Equity Credit A. X X B. X X C. X X D. X X E. X X F. X X G. X X H. X X I. X X J. X X Blooms Taxonomy: Apply AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 2 Medium Learning Objective: 02-C4 Topic: Debit Topic: Credit Topic: Account Balance [Question] 167. Barton began Barton Office Services in October and during the month completed the following transactions: a. Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock. b. Paid $500 cash for an insurance premium covering the next 12 months. c. Completed a word processing assignment for a customer and collected $1,000 cash. d. Paid $200 cash for office supplies. e. Paid $2,000 for October's rent. Prepare journal entries to record the above transactions. Explanations are unnecessary. Answer: a. Cash 10,000 Computer Equipment 15,000 Common 25,000 b. Prepaid Insurance 500 Cash 500 c. Cash 1,000
Test-Bank-Financial-and-Managerial-Accounting-5th-Edition-Wild.docx