Exam (elaborations)
HBS Business CORE - HBX CORe Module 2 Practice.
- Course
- HBS Business CORE - HBX CORe
- Institution
- Harvard University
HBS Business CORE - HBX CORe
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Module 2 Practice1) NOTES RECEIVABLE increases with a
Debit
correct
Assets increase with a debit.
Credit
Assets decrease with a credit.
2) Select the accounts that will be impacted by the transaction described below and
drag them to the correct section of the accounting equation. Once the T-account
appears, choose the date from the drop-down menu, and enter the appropriate
amount as debit or credit.
You must choose a date and enter an amount on each T-account line shown in order to
submit the exercise. If the Next Step or Submit button is not enabled, make sure you
have selected a date for each line in the T-accounts, and make sure there is an amount
in the debit or credit column for each line. If there are any unused T-accounts in the
accounting equation bucket area, make sure they are dragged back up to the Accounts
bucket.
Gill Fishing, a company that provides fishing expeditions for tourists at 8 locations across
the globe, sold 15 tickets for expeditions at its various locations on January 1, 2015 for a
total of $15,000 ($1,000 per customer). The customers will go on the expeditions during
the fishing months from May - September 2015. All of the customers paid in cash at the
time of the purchase.
What impact would the receipt of cash have on this date?
By July 31, 2015, Gill had provided eight of the fifteen expeditions.
What would be the impact when Gill Fishing records the services provided for the
month?
On July 1, 2015, when the tickets were sold, the Cash account (an asset) should be
debited to show the amount received ($15,000) and, since the revenue has not been
earned and Gill Fishing is obligated to provide the expeditions, the Deferred Revenue
account (a liability) should be increased (credited) by the amount of funds received
($15,000).
This study source was downloaded by 100000889502333 from CourseHero.com on 08-17-2024 13:08:36 GMT -05:00
https://www.coursehero.com/file/44209967/Module-2-Practicedocx/
, On July 31, 2015, Gill Fishing has earned the revenue from eight of the tickets sold and
reduced their obligation by the same amount so they should reduce (debit) the Deferred
Revenue account (a liability) for $8,000 and increase (credit) the Revenue account (part
of owners' equity) for $8,000, representing eight of the fifteen expeditions completed.
3) How would you record this transaction on a T-account?
Suppose on June 30, 2015 Ziesel, Corp., received a utility bill for $1,200 and paid it
immediately.
DATE
ACCOUNTS
DEBIT
CREDIT
06/30/15
Utility Expense
$1,200 debit
Cash
$1,200 credit
For the payment of utility bill
Cash is an asset account and it is decreased by credits (on the right in T-accounts).
Utility Expense is an expense account and it is increased by debits (on the left in T-
accounts).
4) Select the accounts that will be impacted by the transaction described below and
drag them to the correct section of the accounting equation. Once the T-account
appears, choose the date from the drop-down menu, and enter the appropriate
amount as debit or credit.
You must choose a date and enter an amount on each T-account line shown in order to
submit the exercise. If the Next Step or Submit button is not enabled, make sure you
have selected a date for each line in the T-accounts, and make sure there is an amount
in the debit or credit column for each line. If there are any unused T-accounts in the
accounting equation bucket area, make sure they are dragged back up to the Accounts
bucket
UDeliver, a moving rental truck company, paid $3,600 on 1/1/2016 for 12 months of
insurance coverage on a fleet of trucks for the coming year.
What would be the impact on this date?
This study source was downloaded by 100000889502333 from CourseHero.com on 08-17-2024 13:08:36 GMT -05:00
https://www.coursehero.com/file/44209967/Module-2-Practicedocx/
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