Part 1
Analyze and record the following transactions in the form of T Accounts for Mr. James:
Jan1: Amount invested in the business $10,000.
Jan7: Bought equipment for $500.
Jan9: Bought office furniture for cash $2,000.
Jan10: Bought materials for cash $2,000.
Jan17: Sold part of equipment for $200.
Jan18: Bought computer on credit for $1,000.
Jan19: Purchased office stationary for $100.
Jan25: Paid cash for computer purchased on credit $700.
Guidelines for the assignment:
• Identify the account.
• Classify the account.
• Identify (Debit or Credit, left side or right side) the appropriate side to record.
• Write the transaction under the appropriate side.
Part 2
During the month of January, Mr. Suliz invested $4,000 in a business. He purchased a laptop for $1,000 with cash, and purchased office equipment for $2,000 on credit.
1. List the accounts to be debited and amount of their debit.
2. List the accounts to be credited and amount of their credit.
Part 3
In the format provided below, complete the chart for the following transactions using the rules of debit and credit:
1. Cash
2. Cash in bank
3. Accounts receivable
4. Laptop
5. Office equipment
6. Accounts payable
7. Owner s capital
Guidelines for the assignment:
• Name the account as an asset, liability, or owner s equity.
• Record whether the increase is on the debit side or the credit side.
• Record whether the decrease is on the debit side or the credit side.
• Write whether the normal balance is a debit or credit balance.
Part 4
1. Classify the following as one of the headings listed below. Create a table like the one below in Calc and put a checkmark or X where applicable.
Assets Liability Owner’s Equity
Owner’s Equity X X √
Cash √ X X
Bank √ X X
Computer √ X X
Laptop √ X X
Land √ X X
Office Equipment √ X X
Accounts Payable X √ X
Guidelines:
• Identify whether the term is an asset, liability, or owner s equity.
• Maximum time given for the completion of the assignment is five minutes.
• Put a checkmark under the appropriate heading.
2. Identify the side of normal balance. Create a table like the one shown below in Calc and put a checkmark or X where applicable.
Account Debit Credit
Cash √ X
Bank √ X
Land √ X
Office Vehicle √ X
Accounts Receivable √ X
Accounts Payable X √
Owner’s Equity X √
Guidelines:
• Identify whether the normal balance is a debit or credit balance of each account.
• Maximum time given for the completion of the assignment is five minutes.
• Put a tick mark under the appropriate column.
3. Classify the following as Debit or Credit. Create a table like the one shown below in Calc and put a checkmark or X where applicable.
Account Debit Credit
Cash √ X
Bank √ X
Buildings √ X
Land √ X
Office Furniture √ X
Office Equipment √ X
Accounts Payable X √
Accounts Receivable √ X
Owner’s Equity X √
Guidelines:
• Identify whether each account is an asset, liability, or owner s equity.
• Maximum time given for the completion of the assignment is five minutes.
• Put a check mark under the appropriate column.
Part 5
Write transaction events for Mr. Williams following transactions:
Cash Williams Capital Office Equipment
LEFT SIDE
Debit
Increase
+ RIGHT SIDE
Credit
Decrease
_ LEFT SIDE
Debit
Increase
+ RIGHT SIDE
Credit
Decrease
_ LEFT SIDE
Debit
Increase
+ RIGHT SIDE
Credit
Decrease
_
(1) 50000
(6) 10000
(8) 1500 (2) 10000
(5) 1000
(7) 500 (1) 50000
(6) 10000
(2) 10000
(3) 5000
(4) 2000
Accounts Receivable Accounts Payable Office Furniture
LEFT SIDE
Debit
Increase
+ RIGHT SIDE
Credit
Decrease
_ LEFT SIDE
Debit
Increase
+ RIGHT SIDE
Credit
Decrease
_ LEFT SIDE
Debit
Increase
+ RIGHT SIDE
Credit
Decrease
_
(4) 2000
(8) 1500 (5) 1000 (3) 5000 (7) 500
Guidelines:
• Identify the effect of each transaction on each account.
• Write the business transaction.
• Maximum time given for the completion of the assignment is 20 minutes.
