Question : Essay Questions 169. Miley Block, Inc. a building consultant. Shown below (a) : 1257793

 

Essay Questions 

169. Miley Block, Inc. is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.   

1.

Accounts Payable 

 

7.

Telephone Expense

2.

Accounts Receivable 

 

8.

Unearned Revenue

3.

Cash

 

9.

Common Stock

4.

Consulting Fees Earned 

 

10.

Dividends

5.

Office Supplies

 

11.

Insurance Expense

6.

Office Supplies Expense

 

12.

Prepaid Insurance

 

 

 

 

Debit

Credit

 

Example:

 

2

4

Completed consulting work for a client who will pay at a later date.

 

A.

Received cash in advance from a customer for designing a building

 

 

 

B.

Purchased office supplies on credit.

 

 

 

C.

Paid for the supplies purchased in B

 

 

 

D.

Received the telephone bill of the business and immediately paid it.

 

 

 

E.

Paid for a 3-year insurance policy

 

 

 

 

170. Drew Castle, Inc. is an insurance appraiser. Shown below are (a) several accounts in his ledger with each account preceded by an identification number, and (b) several transactions completed by Castle. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.  

Accounts Payable                                      8.Office Supplies Expense

Accounts Receivable                                 9. Prepaid Insurance

Appraisal Fees Earned                             10. Salaries Expense

Cash                                                         11. Telephone Expense

Insurance Expense                                   12. Unearned Appraisal Fees

Office Equipment                                    13.  Common Stock

Office Supplies                                        14. Dividends

 

 

 

 

 

 

 

 

 

Debit

Credit

Example:

 

 

 

Completed an appraisal for a client who promised to pay at a later date.

 

2

3

A.

Received cash in advance for appraising a hail damage claim………………………….

 

 

 

B.

Purchased office supplies on credit………

 

 

 

C.

The company paid cash in dividends to the Drew Castle.  (sole shareholder)….

 

 

 

D.

Received the telephone bill of the business and immediately paid it…………………….

 

 

 

E.

Paid the salary of the office assistant….

 

 

 

F.

Paid for the supplies purchased in transaction B…………………………..

 

 

 

G.

Completed an appraisal for a client and immediately collected cash for the work done…