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    I) Increase in Utilities Expense J) Decrease in Land

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    Rosendo Bisnar Jr.
    Duke Cray invests $20,000 to start a cleaning and laundry business. Various transactions are recorded including purchasing equipment and supplies, receiving payment from customers, paying salaries and bills. Journal entries are provided to record the transactions which involve accounts such as cash, accounts receivable, supplies, equipment, accounts payable, capital, service revenue, expenses and withdrawals.

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    I) Increase in Utilities Expense J) Decrease in Land

    Uploaded by

    Rosendo Bisnar Jr.
    143 views3 pages
    Duke Cray invests $20,000 to start a cleaning and laundry business. Various transactions are recorded including purchasing equipment and supplies, receiving payment from customers, paying salaries and bills. Journal entries are provided to record the transactions which involve accounts such as cash, accounts receivable, supplies, equipment, accounts payable, capital, service revenue, expenses and withdrawals.

    Original Description:

    Week 1

    Original Title

    Week 1 - Assignment #1

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    Duke Cray invests $20,000 to start a cleaning and laundry business. Various transactions are recorded including purchasing equipment and supplies, receiving payment from customers, paying salaries and bills. Journal entries are provided to record the transactions which involve accounts such as cash, accounts receivable, supplies, equipment, accounts payable, capital, service revenue, expenses and withdrawals.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    143 views3 pages

    I) Increase in Utilities Expense J) Decrease in Land

    Uploaded by

    Rosendo Bisnar Jr.
    Duke Cray invests $20,000 to start a cleaning and laundry business. Various transactions are recorded including purchasing equipment and supplies, receiving payment from customers, paying salaries and bills. Journal entries are provided to record the transactions which involve accounts such as cash, accounts receivable, supplies, equipment, accounts payable, capital, service revenue, expenses and withdrawals.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    JOSE RIZAL UNIVERSITY

    ACC C101
    Assignment #1

    1. Duke Cray decides to open a cleaning and laundry service near the local college campus that will
    operate as a sole proprietorship. Prepare journal entries to record the following transactions.

    (1) Duke Cray invests Php20,000 in cash to start a cleaning and laundry business on June 1.
    (2) Purchased laundry equipment for Php5,000 paying Php3,000 in cash and the remainder due in
    30 days.
    (3) Purchased laundry supplies for Php1,200 cash.
    (4) Received a bill from Campus News for Php300 for advertising in the campus newspaper.
    (5) Cash receipts from customers for cleaning and laundry amounted to Php1,500.
    (6) Paid salaries of Php200 to student workers.
    (7) Billed the Tiger Football Team Php200 for cleaning and laundry services.
    (8) Paid Php300 to Campus News for advertising that was previously billed in Transaction 4.
    (9) Duke Cray withdrew Php900 from the business for living expenses.
    (10) Incurred utility expenses for month on account, Php400.

    2. State the account to be debited and the account to be credited for the following transactions. Choose from the
    following list of accounts: cash, accounts receivable, supplies, equipment, accounts payable, note payable,
    capital, withdrawals, service revenue, utilities expense, and salary expense.

    a) _Purchased equipment for cash.


    b) _Performed services for cash.
    d) _Purchased supplies for cash.
    e) _Purchased equipment by issuing a note payable.
    f) _Purchased supplies on account.
    g) _Performed services on account.
    h)_Received cash on account.
    i)_ Paid a creditor on account.
    j) _Paid salary of employees for the current period.

    3. State whether the account should be debited or credited and the normal balance of the account for the items
    listed below:

    Account Recorded as a debit or Normal balance of the


    credit account
    a) Increase in Accounts payable
    b) Decrease in Salary expense
    c) Increase in Withdrawals
    d) Decrease in Capital
    e) Decrease Supplies
    f) Increase in Accounts receivable
    g) Decrease in Note payable
    h) Decrease in Note receivable
    i) Increase in Utilities expense
    j) Decrease in Land
    ANSWERS:
    1.
    NO. PARTICULARS DEBIT CREDIT
    1 Cash 20,000
    Owner’s Capital 20,000
    2 Equipment 5,000
    Cash 3,000
    Accounts Payable 2,000
    3 Supplies 1,200
    Cash 1,200
    4 Advertising Expense 300
    Accounts Payable 300
    5 Note Receivable 1,500
    Service Revenue 1,500
    6 Salaries Expense 200
    Cash 200
    7 Note Receivable 200
    Service Revenue 200
    8 Accounts Payable 300
    Cash 300
    9 Withdrawal 900
    Cash 900
    10 Utilities Expense 400
    Accounts Payable 400

    T-Balance

    PARTICULARS DEBIT CREDIT


    Cash 14,400
    Note Receivable 1,700
    Supplies 1,200
    Equipment 5,000
    Accounts Payable 2,400
    Owner’s Capital 20,000
    Service Revenue 1,700
    Withdrawal 900
    Salaries Expense 200
    Advertising Expense 300
    Utilites Expense 400
    2.
    NO, DEBIT CREDIT
    a Equipment Cash
    b Cash Service Revenue
    d Supplies Cash
    e Equipment Note Payable
    f Supplies Accounts Payable
    g Accounts Receivable Service Revenue
    h Cash Accounts Receivable
    i Accounts Payable Cash
    j Salary Expense Cash

    3.

    Account Recorded as a Normal balance of


    debit or credit the account
    a) Increase in Accounts payable Credit Credit
    b) Decrease in Salary expense Debit Debit
    c) Increase in Withdrawals Debit Debit
    d) Decrease in Capital Debit Credit
    e) Decrease Supplies Credit Debit
    f) Increase in Accounts receivable Credit Debit
    g) Decrease in Note payable Debit Credit
    h) Decrease in Note receivable Credit Credit
    i) Increase in Utilities expense Debit Debit
    j) Decrease in Land Credit Debit

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