North Central Texas College - ACCOUNTING 2301Accounting 2301 Chapter 2 Homework.

1. For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) select debit (Dr.) or credit (Cr.) to identify th ...

1. For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) select debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance. Account Type of Account Normal Balance Increase (Dr. or Cr.) a. Land Asset Debit Debit b. Cash Asset Debit Debit c. Legal Expense Expense Debit Debit d. Prepaid Insurance Asset Debit Debit e. Accounts Receivable Asset Debit Debit f. Dividends Equity Debit Debit g. License Fee Revenue Revenue Credit Credit h. Unearned Revenue Liability Credit Credit i. Fees Earned Revenue Credit Credit j Equipment Asset Debit Debit k Notes Payable Liability Credit Credit l. Common Stock Equity Credit Credit 2. The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock. b. The company purchased office supplies for $1,250 cash. c. The company purchased $10,050 of office equipment on credit. d. The company received $15,500 cash as fees for services provided to a customer. e. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,700 as fees for services provided. g. The company paid $1,225 cash for the monthly rent. h. The company collected $1,125 cash as partial payment for the account receivable created in transaction f. i. The company paid $10,000 cash in dividends to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries. 2. Post the above journal entries to T-accounts, which serves as the general ledger for this assignment. Determine the ending balance of each T-account. Cash a. 100,750 b. 1,250 d. 15,500 e. 10,050 h. 1,125 g. 1,225 i. 10,000 Balance 94,850 Accounts Receivable f. 2,700 h. 1,125 Balance 1,575 Office Equipment c. 10,050 Balance 10,050 Office Supplies b. 1,250 Balance 1,250 Accounts Payable e. 10,050 c. 10,050 Balance Common Stock a. 100,750 Balance 100 Dividends i. 10,000 Balance 10,000 Fees Earned d. 15,500 f. 2,700 Balance 18,200 Rent Expense g. 1,225 Balance 1,225 3. The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock. b. The company purchased office supplies for $1,250 cash. c. The company purchased $10,050 of office equipment on credit. d. The company received $15,500 cash as fees for services provided to a customer. e. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,700 as fees for services provided. g. The company paid $1,225 cash for the monthly rent. h. The company collected $1,125 cash as partial payment for the account receivable created in transaction f. i. The company paid $10,000 cash in dividends to the owner (sole shareholder). Check Cash ending balance, $94,850. Prepare the Trial Balance. SPADE COMPANY Trial Balance May 31, 2016 Debit Credit Cash $94,850 Accounts receivable 1,575 Office supplies 1,250 Office equipment 10,050 Accounts payable Common stock 100,750 Dividends 10,000 Fees earned 18,200 Rent expense 1,225 Totals $118,950 $118,950 Explanation: Cash a. 100,750 b. 1,250 d. 15,500 e. 10,050 h. 1,125 g. 1,225 i. 10,000 Balance 94,850 Accounts Receivable f. 2,700 b. 1,125 Balance 1,575 Office Supplies a. 1,250 Balance 1,250 Office Equipment c. 10,050 Balance 10,050 Accounts Payable e. 10,050 c. 10,050 Balance 0 Common Stock a. 100,750 Balance 100,750 Dividends i. 10,000 Balance 10,000 Fees Earned d. 15,500 f. 2,700 Balance 18,200 Rent Expense g. 1,225 Balance 1,225 4. Following are the transactions for Valdez Services.