College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Textbook Question
Chapter 3, Problem 2SEB
DEBIT AND CREDIT ANALYSIS Complete the following statements using either “debit” or “credit”:
- (a) The asset account Prepaid Insurance is increased with a ________.
- (b) The owner’s drawing account is increased with a ________.
- (c) The asset account Accounts Receivable is decreased with a ________.
- (d) The liability account Accounts Payable is decreased with a ________.
- (e) The owner’s capital account is increased with a ________.
- (f) The revenue account Professional Fees is increased with a ________.
- (g) The expense account Repair Expense is increased with a ________.
- (h) The asset account Cash is decreased with a ________.
- (i) The asset account Delivery Equipment is decreased with a ________.
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Which of the following increases the reported receivables in the financial statements?
offsetting a credit balance in an account receivable
a credit balance in an account payable
adjustment to eliminate a debit balance in accounts payable
a credit balance in an allowance account
I. Write "T" if the statement is True and write "F" if otherwise
1. Depreciation charges throughout the life of the asset should be recognized at inception at the present value.
2. Receivables are classified as accounts, notes, or other.
3. Financing charges added to a customer's credit card balance with a retailer are recorded as a debit to Accounts
Receivable and a credit to Interest Revenue.
4. Goodwill should be recorded as an asset and never adjusted.
5. The allowance method for uncollectible accounts violates the expense recognition principle.
6. An aging schedule shows a required balance in Allowance for Doubtful Accounts of $8,600. If there is a credit
balance in the allowance account of $2,000 prior to adjustment, the adjustment amount is $6,600.
7. Useful lives of PPES should not exceed 25 years due to legal restrictions.
8. The maturity date of a 60-day note dated December 1 is January 31.
9. The interest due at maturity of a two-month, 8%, $800 note is computed by…
The normal balance of an account is the side of the account (either the debit side or the credit side in the ledger) where we expect to find a positive dollar amount. The normal balance of an asset account is a _________________ balance.
Group of answer choices
break-even
debit
negative
credit
Chapter 3 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 3 - LO3 To debit an account is to enter an amount on...Ch. 3 - Liability accounts normally have debit balances.Ch. 3 - LO3 Increases in owners equity are entered as...Ch. 3 - Prob. 4TFCh. 3 - LO3 To credit an account is to enter an amount on...Ch. 3 - LO3 A debit to an asset account will decrease it.Ch. 3 - A common example of an asset is (a) Professional...Ch. 3 - The accounting equation may be expressed as (a)...Ch. 3 - LO3 Liability, owners equity, and revenue accounts...Ch. 3 - LO4 To record the payment of rent expense, an...
Ch. 3 - Prob. 5MCCh. 3 - Foot and balance the accounts receivable T account...Ch. 3 - LO3 Complete the following questions using either...Ch. 3 - Analyze the following transaction using the T...Ch. 3 - The following accounts have normal balances....Ch. 3 - What are the three major parts of a T account?Ch. 3 - Prob. 2RQCh. 3 - What is a footing?Ch. 3 - What is the relationship between the revenue and...Ch. 3 - What is the function of the trial balance?Ch. 3 - Prob. 1SEACh. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Richard Gibbs began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp started a business...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp starred a business...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - FOOT AND BALANCE A T ACCOUNT Foot and balance the...Ch. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Roberto Alvarez began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Sue Jantz started a...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - Craig Fisher started a lawn service called Craigs...Ch. 3 - Your friend Chris Stevick started a part-time...
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- Using the following key, identify the effects of the following transactions or conditions on the various financial statement elements: I = increases; D = decreases; NE = no effect. A.credit sale b. Collection of a portion of accounts receivable c. Estimate of bad debts d. Write-off of a specific uncollectible accountarrow_forwardThe following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Liabilities Debit Owner's equity: Capital Credit Credit Drawing Income statement accounts: Revenue Credit Expense Credit Debitarrow_forwardWhat will increase the following account items – Debit or Credit? Fill in the blanks. Assets _____________ Equity _____________ Losses _____________ What will decrease these account items – Debit or Credit? Fill in the blanks. Liabilities __________ Expenses __________ Gains _____________ What is the normal balance for these account items – Debit or Credit? Fill in the blanks. Revenue __________ Losses____________ Assets ____________arrow_forward
- Making payments on time is part of (a. payment history b. amount owed c. length of credit history d. new credit e. new mix) portion of a credit score and is (a. 35% b. 30% c. 15% d. 10% ) of the score. Having no late payments makes your credit score go ( a. up b. down ) .arrow_forwardA credit is used to increase which of the following accounts? a. Dividends. b. Insurance Expense. c. Cash. d. Service Revenue.arrow_forwardA credit entry to an account willa. increase assets.b. increase liabilities.c. increase expenses.d. decrease revenues.arrow_forward
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