090 points CP31 Recording Nonquantitative Journal Entries LO

0.90 points CP3-1 Recording Nonquantitative Journal Entries [LO 3-1, LO 3-2, LO 3-3] The following list includes a series of accounts for B-ball Corporation, which has been operating for three years. These accounts are listed alphabetically and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by selecting the appropriate account number(s) to the right of each transaction. If no journal entry is needed, select NA after the transaction. The first transaction is used as an example. Account No. Account Title Accounts Payable Accounts Receivable Cash Common Stock Equipment Income Tax Expense Income Tax Payable Note Payable Prepaid Insurance Rent Expense Service Revenue Supplies Supplies Expense 6 9 10 12 13 Debit Credit a. Example: Purchased equipment for use in the business; paid one-third53 8 cash and signed a note payable for the balance. b. Issued common stock to new investors. c. Collected cash for services performed this period. d. Paid cash for rent this period e. Performed services this period on credit f Collected cash on accounts receivable for services performed last period g. Paid cash on accounts payable for expenses incurred last period. h. Purchased supplies to be used later, paid cash. i. Used some of the supplies for operations. Paid three-fourths of the income tax expense for the year; the balance will be paid next year On the last day of the current period, paid cash for an insurance policy covering the next two years

Solution

Answer

	Transactions	Debit	Credit
a	Purchased equipment for the use in business, paid one third cash & signed note payable for the balance.	5	3,8
b	Issue common stock to new investors	3	4
c	Collected cash for service performed this period	3	11
d	Paid cash for rent this period	10	3
e	Performed services this period on credit	2	11
f	Collected cash on account receivable for service performed last period	3	11
g	Paid cash on accounts payable for expene incurred last period	1	3
h	Purchased supplies to be used later ; paid cash	12	3
i	Used some of the supplies for operations	13	12
j	Paid three fourths of the income tax expense for the year; the balance will be paid next year	6	7,3
k	On the last day of the current period , paid cash for an insurence policy covering the next two years	9	3