Part 1
Analyze and record the following transactions in the T Accounts below:
Jan1: Amount invested in the business $10,000.
Jan7: Bought equipment for $500.
Jan9: Bought office furniture for cash $2,000.
Jan10: Bought materials for cash $2,000.
Jan17: Sold part of equipment for $200.
Jan18: Bought computer on credit for $1,000.
Jan19: Purchased office stationary for $100.
Jan25: Paid cash for computer purchased on credit $700.
Guidelines for the assignment:
- Identify the account.
- Classify the account.
- Identify (Debit or Credit, left side or right side) the appropriate side to record.
- Write the transaction under the appropriate side.
- The first transaction is completed for you as an example
| Jan 1 Transaction | Account Name: Cash | Account Name: Owner’s equity | |
| Debit | Credit | Debit | Credit |
| 10,000 | 10,000 | ||
| Jan 7 Transaction | Account Name: | Account Name: | |
| Debit | Credit | Debit | Credit |
| Jan 9 Transaction | Account Name: | Account Name: | |
| Debit | Credit | Debit | Credit |
| Jan 10 Transaction | Account Name: | Account Name: | |
| Debit | Credit | Debit | Credit |
| Jan 17 Transaction | Account Name: | Account Name: | |
| Debit | Credit | Debit | Credit |
| Jan 18 Transaction | Account Name: | Account Name: | |
| Debit | Credit | Debit | Credit |
| Jan 19 Transaction | Account Name: | Account Name: | |
| Debit | Credit | Debit | Credit |
| Jan 25 Transaction | Account Name: | Account Name: | |
| Debit | Credit | Debit | Credit |
Part 2
During the month of January, Mr. Suliz invested $4,000 in a business. He purchased a laptop for $1,000 with cash and purchased office equipment for $2,000 on credit.
- Use the table below.
- List the accounts to be debited and amount of their debit.
- List the accounts to be credited and amount of their credit.
| Account name (make it up) | Place x in this column if the account is debited | Amount | Place x in this column if the account is credited | Amount |
| 1. | ||||
| 2. | ||||
| 3. |
Part 3
In the table provided below, complete the chart for the following transactions using the rules of debit and credit
- Cash
- Cash in bank
- Accounts receivable
- Laptop
- Office equipment
- Accounts payable
- Owner’s capital
Guidelines for the assignment:
- Name the account as an asset, liability, or owner’s equity.
- Record whether the increase is on the debit side or the credit side.
- Record whether the decrease is on the debit side or the credit side.
- Write whether the normal balance is a debit or credit balance.
- The first account has been completed for you as an example.
| Account name | Asset | Liability | Owner’s Equity | Increase side | Decrease side | Normal balance side |
| Cash | x | Debit | Credit | Debit | ||
| Cash in bank | ||||||
| Accounts Rec | ||||||
| Laptop | ||||||
| Office Equipment | ||||||
| Accounts Payable | ||||||
| Owner’s capital |
Part 4
Write transaction events for Mr. Williams’ following transactions:
| Cash | Williams Capital | Office Equipment | |||
|
LEFT SIDE Debit Increase + |
RIGHT SIDE Credit Decrease – |
LEFT SIDE Debit Decrease – |
RIGHT SIDE Credit Increase + |
LEFT SIDE Debit Increase + |
RIGHT SIDE Credit Decrease – |
|
(1) 50000 (6) 10000 (8) 1500 |
(2) 10000 (5) 1000 (7) 500 |
(1) 50000 (6) 10000 |
(2) 10000 (3) 5000 |
(4) 2000 | |
| Accounts Receivable | Accounts Payable | Office Furniture | |||
|
LEFT SIDE Debit Increase + |
RIGHT SIDE Credit Decrease – |
LEFT SIDE Debit Decrease – |
RIGHT SIDE Credit Increase + |
LEFT SIDE Debit Increase + |
RIGHT SIDE Credit Decrease – |
| (4) 2000 | (8) 1500 | (5) 1000 | (3) 5000 | (7) 500 |
Guidelines:
- Identify the effect of each transaction on each account.
- Write the business transaction.
- Use the table below.
- The first transaction has been completed for you as an example.
| (1) Mr. Williams invested $50,000 in his new business. |
| (2) |
| (3) |
| (4) |
| (5) |
| (6) |
| (7) |
|
(8) |
