91Ó°ÊÓ

Can a business enter into a transaction that affects only the left side of the basic accounting equation? If so, give an example.

Are the following events recorded in the accounting records? Explain your answer in each case. (a) A major stockholder of the company dies. (b) Supplies are purchased on account. (c) An employee is fired. (d) The company pays a cash dividend to its stockholders.

State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) the Common Stock account.

What is the normal balance for each of these accounts? (a) Accounts Receivable. (b) Cash. (c) Dividends. (d) Accounts Payable. (e) Service Revenue. (f) Salaries and Wages Expense. (g) Common Stock.

Indicate whether each account is an asset, a liability, or a stockholders' equity account, and whether it would have a normal debit or credit balance. (a) Accounts Receivable. (b) Accounts Payable. (c) Equipment. (d) Dividends. (e) Supplies.

For the following transactions, indicate the account debited and the account credited. (a) Supplies are purchased on account. (b) Cash is received on signing a note payable. (c) Employees are paid salaries in cash.

For each account listed here, indicate whether it generally will have debit entries only, credit entries only or both debit and credit entries. (a) Cash. (b) Accounts Receivable. (c) Dividends. (d) Accounts Payable. (e) Salaries and Wages Expense. (f) Service Revenue.

What are the normal balances for the following accounts of Apple? (a) Accounts Receivable, (b) Accounts Payable, (c) Sales, and (d) Selling, General, and Administrative Expenses.

Journalize these accounting transactions. (a) Stockholders invested \(\$ 12,000\) in the business in exchange for common stock. (b) Insurance of \(\$ 800\) is paid for the year. (c) Supplies of \(\$ 1,800\) are purchased on account. (d) Cash of \(\$ 7,500\) is received for services rendered.