Chapter 3 Principles of Accounting Homework

Chapter 3 Homework

Ja’Niya Ladson

Voorhees College

ACT 231 VC

Professor Melicent Jaridau

January 2, 2022

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EB2.

LO 3.2 Consider the following accounts and determine if the account is an asset (A), a liability (L), or equity (E).

A. Accounts Receivable- L

B. Sales Revenue- E

C. Land- A

D. Unearned Revenue- L

EB8.

LO 3.4 Identify the normal balance for each of the following accounts. Choose Dr for Debit; Cr for Credit.

	Normal balance
Insurance Expense (Asset)	Dr
Accounts Receivable (Asset)	Dr
Office Supplies (Asset)	Dr
Sales Revenue	Cr
Common Stock (Equity)	Cr
Notes Payable (Liability)	Cr

Table3.12

EB10.

LO 3.4 Identify whether each of the following transactions would be recorded with a debit (Dr) or credit (Cr) entry.

	Debit or credit?
Equipment increase (Asset)
Dividends Paid increase	Dr
Repairs Expense increase (Liability)
Service revenue increase (Liability)
Miscellaneous Expense increase
Bonds Payable increase

Table3.14

EB12.

LO 3.2 LO 3.4 West End Inc., an auto mechanic shop, has the following account balances, given in no certain order, for the quarter ended March 31, 2019. Based on the information provided, prepare West End’s annual financial statements (omit the Statement of Cash Flows).

Reference for preparing annual financial statements : https://openstax.org/books/principles-financial-accounting/pages/2-3-prepare-an-income-statement-statement-of-owners-equity-and-balance-sheet

Prepare West End’s annual financial statements. (Omit the Statement of Cash Flows.)

EB21.

LO 3.5 Prepare journal entries to record the following transactions:

E. December 1, collected balance due from customer account, $5,500

F. December 12, paid creditors for supplies purchased last month, $4,200

G. December 31, paid cash dividend to stockholders, $1,000

EB23.

LO 3.5 Post the following August transactions to T-accounts for Accounts Payable and Supplies, indicating the ending balance (assume no beginning balances in these accounts):

H. purchased supplies on account, $600

I. paid vendors for supplies delivered earlier in month, $500

J. purchased supplies for cash, $450