Connect - another Financial Accounting, Chapter 2

1.

Classify each of the following accounts as an asset (A), liability (L), or equity (EQ) account.

----------------------------------------------------------------------------------- 2. Identify the normal balance (debit or credit) for each of the following accounts. ----------------------------------------------------------------------------------- 3. For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); Common Stock (307); Dividends (319); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $88,000 in cash along with equipment having a $48,000 value in exchange for common stock. On May 21, Elegant Lawns purchases office supplies on credit for $640. On May 25, Elegant Lawns receives $9,600 cash for performing landscaping services. On May 30, Elegant Lawns receives $2,800 cash in advance of providing landscaping services to a customer. ----------------------------------------------------------------------------------- 4. Determine the ending balance of each of the following T-accounts. ----------------------------------------------------------------------------------- 5. Indicate the financial statement on which each of the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet.