Chapter Three Journal Transactions L Worksheet This exeroise

Chapter Three: Journal Transactions ?L Worksheet This exeroise will continue the understanding of the accounting equation and endry aocounting that began in the prior chapter I worksheet, but add a step. So here students must in this chapter we will revisit the prior 2The Insurance Company parchased a new computer system for a $10.000 parcall off land r. Identily what accound\'s) ane affected by the transaction 2Identity if the affected accounts are increased or decreased by the transaction Determine f increasing (decreasingl the account ia represented by a debit or credit The Insuranoe Company purchased a new computer system for $10,000 in cash Computer System -AaseL_ -ndease decrease decrease D 3 The Insurance Company paid their new employees 35,351 cash increase decrease Ce Increase decrease Wages Expense Cash Account 1. The Insurance Company purchased a new oomputer system for $10,000 on Effect on AcsousRebai Cred Computer System etincreastdecreasea Accounts Payable CFincreasedecrease 59 02014 C2014 evennt

Solution

1)
Computer System........ASSETS........... Increase ....................... Debit
Accounts Payable.......LIABILITIES....... Increase ....................... Credit

Computer System........(Dr) 10,000
Accounts Payable...............(Cr) 10,000

2)
Computer System........ASSETS........... Increase ....................... Debit
Land...........................ASSETS........... Decrease ...................... Credit

Computer System........(Dr) 10,000
Land................................(Cr) 10,000

3)

Wage Expense....... EXPENSE........ Increase ........................ Debit
Cash.....................ASSETS........... Decrease ....................... Credit

Wage Expense........(Dr) 5,351
Cash................................(Cr) 5,351

4)
Cash.................ASSETS.................. Increase ....................... Debit
Service Fee......REVENUE................. Increase ....................... Credit

Cash....................... (Dr) 1241
Service Fee......................(Cr) 1241

5)
Accounts Receivable.......ASSETS.... Increase ....................... Debit
Service Fee..............REVENUE...... Increase ....................... Credit

Accounts Receivable....................... (Dr) 10000
Service Fee............................................(Cr) 10000

6)
Interest Expense.........EXPENSE....... Increase ....................... Debit
Interest Payable..........LIABILITY....... Increase ....................... Credit

Interest Expense...................(Dr) 4000
Interest Payable..........................(Cr) 4000

7)
Revenue.................REVENUE............. Increase ....................... Credit
Interest Receivable......ASSETS............ Increase ....................... debit

Interest Receivable................(Dr) 2500
Revenue.......................................(Cr) 2500

8)
Cash....................ASSETS.......... Increase ....................... Debit
Interest Revenue....REVENUE....... Increase ....................... Credit

Cash........................(Dr) 1000
Interest Revenue.....................(Cr) 1000

9)
Cash....................ASSETS.......... Increase ....................... Debit
Interest Revenue....REVENUE....... Increase ....................... Credit

Cash........................(Dr) 2500
Interest Revenue.....................(Cr) 2500

10)
Utility Expense..........EXPENSE................. Increase ....................... Debit
Cash............................ASSETS................Decrease ....................... Credit

Utility Expense..........(Dr) 3487
Cash.................................(Cr) 3487

11)
Building................ASSETS................ Increase ....................... Debit
Mortgage Payable.......LIABILITIES...... Increase ....................... Credit

Building.............................(Dr) 300,000
Mortgage Payable.........................(Cr) 300000