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U1 Review Define the following terms: assets, liabilities, and equity. Provide t

ID: 2509744 • Letter: U

Question

U1 Review

Define the following terms: assets, liabilities, and equity.

Provide two examples of each of the following terms: assets, liabilities, and equity.

Provide two examples of expenses a business might incur.

Read the items below and indicate whether the account type is increased with a debt or credit.
_____ a. Asset
_____ b. Liabilities
_____ c. Equity
_____ d. Revenue
_____ e. Expenses

Classify each of the following items as assets (A), liabilities (L), equity (EQ), revenue (R), or expense (E)
_____ a. Land
_____ b. Owner, capital
_____ c. Fees earned
_____ d. Equipment
_____ e. Telephone bill
_____ f. Accounts payable
_____ g. Unearned revenue
_____ h. Accounts receivable
_____ i. Supplies
_____ j. Rent

Following are the transactions of a new company called Pose-for-Pics.

Aug.1

Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company.

Aug.1

Paid $2,100 for August rent

Aug.5

The company purchased office supplies for $880 cash.

Aug.20

The company received $3,331 cash in photography fees earned.

Aug.31

The company paid $675 cash for August utilities.

Aug.1

Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company.

Aug.1

Paid $2,100 for August rent

Aug.5

The company purchased office supplies for $880 cash.

Aug.20

The company received $3,331 cash in photography fees earned.

Aug.31

The company paid $675 cash for August utilities.

Explanation / Answer

Answers

Date

General Journal

Debit ($)

Credit ($)

Aug-01

Cash

6500

Equipment

33500

Owner's Capital

40000

Aug-01

Rent Expenses

2100

Cash

2100

Aug-05

Office Supplies

880

Cash

880

Aug-20

Cash

3331

Fees earned

3331

Aug-31

Utilities expenses

675

Cash

675

Date

General Journal

Debit ($)

Credit ($)

Aug-01

Cash

6500

Equipment

33500

Owner's Capital

40000

Aug-01

Rent Expenses

2100

Cash

2100

Aug-05

Office Supplies

880

Cash

880

Aug-20

Cash

3331

Fees earned

3331

Aug-31

Utilities expenses

675

Cash

675