Question

Listed below are accounts to use for transactions (a) through (1), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.
1. Accounts Payable
2. Accounts Receivable
3. Accumulated Depreciation - Office Equipment
4. Building
5. Common Stock
6. Cash
7. Depreciation Expense-Office Equipment
8. Dividends
9. Fees Earned
10. Insurance Expense
11. Insurance Payable
12. Interest Expense
13. Interest Payable
14. Interest Receivable
15. Land
16. Notes Payable
17. Office Supplies
18. Office Supplies Expense
19. Prepaid Insurance
20. Unearned Fees
21. Utilities Expense
22. Utilities Payable Transactions Account(s) Debited Account(s) Credited
a. Utility bill is received; payment will be made in 10 days.
b. Paid the utility bill previously recorded in transaction (a).
c. Bought a three-year insurance policy and paid in full.
d. Made an entry to adjust for the expired portion of the insurance premium.
e. Received $7,000 from a contract to perform accounting services over the next two years.
f. Made an entry to adjust for half of the services performed in (e).
g. Purchased office supplies, paying part cash and charging the balance on account.
h. Borrowed money from a bank and signed a note payable due in six months.
i. Recorded one month's accrued interest on the note payable
j. Depreciation is recorded on office equipment.

Answer 1

Answer:

The accounts to use for transactions is shown below. it also indicates which transaction is placed either in the debit or credit side.

Explanation:

Solution

       Accounts Debited                  Accounts Credited

a.     Utilities Expense                       Utilities Payable

b.     Utilities Payable                              Cash

c.      Prepared insurance                       Cash

d.      Insurance Expense                 Prepared insurance  

e.       Cash                                       Unearned Cash

f        Unearned Fees                       Fees Earned

g.      Office supplies                        Cash, Accounts Payable

h        Cash                                        Notes Payable

i         Interest Expense                     Interest Payable

j         Depreciation Expense-Office  

         (Office Equipment)                Accumulated Depreciation

                                                              (Office Equipment)