Survey of Accounting 6th Edition by Warren sm-Test Bank

, APPENDIX A
DOUBLE-ENTRY ACCOUNTING SYSTEMS
EXERCISES


E–1

a. credit g. credit
b. debit h. credit
c. debit i. credit
d. credit j. debit
e. credit k. credit
f. credit l. debit


E–2

a. and b.
Account Debited Account Credited
Transaction Type Effect Type Effect
(1) asset + capital stock +
(2) asset + asset –
(3) asset + asset –
liability +
(4) expense + asset –
(5) asset + revenue +
(6) liability – asset –
(7) asset + asset –
(8) expense + asset –
(9) dividend + asset –




499
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

, E–3

(1) Cash ..................................................................... 25,000
Capital Stock .................................................. 25,000
(2) Supplies ............................................................... 1,750
Cash................................................................ 1,750
(3) Equipment ........................................................... 18,000
Accounts Payable .......................................... 14,400
Cash................................................................ 3,600
(4) Operating Expenses ........................................... 2,700
Cash................................................................ 2,700
(5) Accounts Receivable .......................................... 13,500
Service Revenue ............................................ 13,500
(6) Accounts Payable ............................................... 7,500
Cash................................................................ 7,500
(7) Cash ..................................................................... 10,000
Accounts Receivable .................................... 10,000
(8) Operating Expenses ........................................... 1,050
Supplies ......................................................... 1,050
(9) Dividends ............................................................. 2,500
Cash................................................................ 2,500

E–4

WILD RIVER TOURS CO.
Trial Balance
May 31, 2012
Debit Credit
Balances Balances
Cash .................................................................................... 16,950
Accounts Receivable ......................................................... 3,500
Supplies .............................................................................. 700
Equipment ........................................................................... 18,000
Accounts Payable .............................................................. 6,900
Capital Stock ...................................................................... 25,000
Dividends ............................................................................ 2,500
Service Revenue................................................................. 13,500
Operating Expenses........................................................... 3,750
45,400 45,400



500
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

, E–5

1. debit and credit entries (c)
2. debit and credit entries (c)
3. debit and credit entries (c)
4. credit entries only (b)
5. debit entries only (a)
6. debit entries only (a)
7. debit entries only (a)


E–6

a. Liability—credit f. Revenue—credit
b. Asset—debit g. Asset—debit
c. Stockholders’ equity h. Expense—debit
(Capital stock)—credit i. Asset—debit
d. Asset—debit j. Expense—debit
e. Stockholders’ equity
(Dividends)—debit


E–7

a. The increase of $184,000 ($515,000 – $331,000) in the cash account does
not necessarily indicate earnings of that amount. Earnings will represent
the net change in all assets and liabilities from operating transactions.
b. $38,350 ($222,350 – $184,000)




501
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.