mane Fi. OFCenstash ‘a [oe Cid Ta os an | a l Aalaingthe feof Transactions [9s | 2 Determining the Normal Balance, Increase, and Decrease Sides for Accounts | 36 Ps ‘Anaya Tsao ino Debit and Ged Pars | 20 Ps. Total 85 Ps TESTA Part One—Analyzing Accounting Concepts and Practices Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 1. An accounting device used to analyze transactions is a T account, 2, An amount recorded on the left side of a T account is a credit. 3. Each asset account has'a normal debit balance. 4, Each liability account has a normal credit balance. 5. The balance of an account increases on the same side as the normal balance side, 6. Asset accounts increase on the credit side. 7. Each transaction changes the balances in at least two accounts 8. A list of accounts used by a business is a chart of accounts. 9. When cash is paid for supplies, the supplies account is increased by a debit. 10. Common accounting practice is to record withdrawals as debits directly in the owner's capital account. M1. The left sice of an asset account is the credit side because asset accounts are on the left side of the accounting equation. 12. A drawing account is decreased by debits and increased by credits 13, Increases in expense accounts are recorded as debits because they decrease the owner's capital account. 14, The normal balance side of an accounts receivable account isa credit. 15, Accounts payable accounts are increased with a debit. 16, Advertising Expense is increased with a debit 17. Cash js increased with a credit, 18, Prepaid Insurance is decreased with a credit 19, To summarize withdrawal information separately from the other records, ‘owner withdrawal transactions are recorded in the owner's capital account 20. Increases to liability accounts are recorded on the debit side. Chapter 2—Test A © South-Western Cengage Learning B 13. ie 15, Answers + -_¥ = _T_ —T_ EL =a TT Te EF ae = pein fe ae oa FPart Two—Analyzing the Fffect of Transactions Directions: For each of the following items, select the one choice that best ‘completes the statement. Print the letter identifying your choice in the Answers column. 1. The right side of a T account is the a. debit side credit side. € normal balance side. 4. equity side. 2. If an amount is recorded on the side of a T account opposite the normal balance side, a, the account balance is increased. the account balance is decreased. the account balance is unaffected. d._ the account balance is correct. 3. The normal balance side of an asset account is the debit side . credit side. decrease side. 4. right side. 4. When the owner invests cash in a business, the owner's capital account is a. increased by a debit. ® increased by a credit. © decreased by a debit. d. decreased by a credit. 5. When a business pays cash on account, a liability account is, a. increased by a debit. b.” increased by a credit, decreased by a debit. [. decreased by a credit. 6. When cash is received from sales, the change in the owner's equity is usually a.) recorded in a separate revenue account: - recorded directly in the owner's capital account. ¢. recorded as interest revenue. d., always recorded on the debit side. 7. Increases in a revenue account are shown on a T account's debit side. credit side. S left side. di, none of these. 8, When $1,500.00 cash is received on account. a. Sales is increased with a credit and Cash is increased with a credit. b. Accounts Receivable is increased with a debit and Cash is increased with a credit. {) Accounts Receivable is decreased with a credit and Cash is increased with a debit. {- Accounts Receivable is decreased with a debit and Cash is increased with a debit. the 9, The normal balance side of any expense account is debit side. % credit side. ©. tight side. . none of these. 2 Century 21 Accounting, 9th Edition Answers 1_b 2b 9 _A Chapter 2—Test A{ Name Part Three—Determining How Transactions Change an Accounting Equation Claudia Arellano is starting Arellano Consulting Services, a small service business. Arellano Consulting Services uses the accounts shown in the following. accounting equation. Use the form below to record the following transactions. Use a plus sign (+) to indicate an increase and a minus sign (-) to indicate a decrease. Calculate new balances for all accounts after each transaction. Transactions 1, Received cash from owner as an investment, $15,000.00 2, Paid cash for insurance, $5,000.00. 3, Bought supplies on account from Lee’s Supplies, $1,600.00. 4, Paid cash on account to Lee's Supplies, 1,000.00. 5. Received cash from’sales, $2,500.00. 6. Sold services on account to Jones Computers, $3,500.00 | Assets: [ ke Liabilities + [Owner's Equity ‘Transaction Accts. Rec. Prepaid ‘Accts. Pay. Claudia No. Cash Jones ‘Supplies Insurance lee's + Areltano, Computers ‘Supplies Capital Beg. Bal. $0 30 $0 $0 $0 30 1 418,090 + 15,099 10,000] NS" 5,900 New Bal 1,600 Ly \600 4 ‘New Bal. joo NY 1,000 dS -1,000 ‘New Bal. . cy W500 | “5 +2,500 S i+ 2,580 | 17500 Bal S/o we we | 73,00 ]?4.000 New Bal. |], 50.0 16% [see Rezo [240 7 5000 FG O_M1, C0 QW 600 Chapter 1—Test A © South-Western Cengage Learning 3Part Four—Determining How Transactions Change an Accounting Equation Continue to record transactions for Arellano Consulting Services, using the accounts shown in the following accounting equation. Use the form below to record the following transactions, Use a plus sign (+) to indicate an increase ‘and a minus sign () to indicate a decrease. Calculate new balances for all accounts after each transaction. Transactions 7. Paid cash for supplies, $750.00. 8. Paid cash for rent, $1,100.00. . 9. Paid cash to owner for personal use, $1,500.00. 10. Paid cash for telephone bill, $250.00. 11. Received cash on account from Jones Computers, $2,000.00. _ \ \Owner's Equity Transaction . Claudia No. Cash +) Jones" |+ Supplies Arellano, Computers Capital Beg. Bal. $11,500 | $3,500 | $1,600 $21,000 Z -7S8 4750 New Bal. 8-100 190 New Bil 1 Beq =" Goo Neva. 350 New Bal bf ‘New Bal. 1%,\56 4 Century 21 Accounting, 9th Edition Chapter )—Test APui baci Clem | vate GEe cs None aaa 7 Z ew MMB YT VATS, Zor] eT OND PH TS a7 SOTA BIST © Cs 01] ee a aI Hl TORT Sanh YOO got] SA Lad 01 7} Tory ean] cae) ee uuu annosoy i i a =] ? Gu = TVNSNOF TH] suopoesuen Suyzifewno Chapter 5 - 39= “gms 3249 pasnun xau ayy UO aouEIeg yooqy>e4), —— —— : yquow ays Jo pua aur ze eouE|eg yseo sjenby —_—_ Gar * qnuou! au Bulunp pred ysed (e103 ssa] = : jel sfenby yguow aig Suunp penaoas yse9 [eon sig yuow up jo Sujuuleq ay ye puey uo yseD 24se2 anol ISL S210), uuNJod —sje}oL uuIN}OD uuinjod pes ugea 21 wuinjod sfeI01, wusNjoD wuinjoa pad a) yeusnof ayp jo 1 a8ed anoig (1 y Mi Gi) ob Bt] Tang, Of} I Ez CE leat uaayS ase tiga suave “oe WNOT 4 Lon Twang. Sou [50a #141 ANnoooy 40 + Chapter 5 fox