ACCT 200 1st Edition Lecture 5 Outline of Last Lecture I Important Things About Debits and Credits II Example Outline of Current Lecture I Review II T Accounts III Trial Balance IV Exercise 2 3 V Brief Exercise 3 1 Current Lecture Acct receivable means you will get cash acct payable means you will need to pay Service revenue revenue fees revenue means you have earned the money Unearned revenues means you collected the money before you provided the customer with the good service unearned revenues are liabilities which have a credit balance Common stock can never be debited Know difference between rent expense paying off a liability paying rent for the past month and prepaid rent asset Buying equipment debit Selling equipment credit T Accounts for General Journal from last class debits on left credits on right Cash 20 000 Supplies 100 500 2500 3900 200 400 900 2000 18 300 Total balance debit 1950 Office Furniture 4000 Common Stock 20 000 Acct Payable 900 Unearned Rev 1950 500 1500 2550 Total balance credit Revenue Fees 3900 Utilities Exp 400 Advertising Exp 200 Salaries Exp 2000 Computer Rent Exp 100 Trial Balance Debit Cash 18 300 Supplies 1950 Office Furniture 4000 Credit Acct Payable 2550 Unearned Rev 500 Common Stock 20 000 Revenues Fees Earned 3900 Utilities Exp 400 Salaries Exp 2000 Advertising Exp 200 Computer Rent Exp 100 TOTALS 26 950 26 950 Debits Credits each account can only have a debit or credit balance normal balance is whatever increases the account Exercise 2 3 Journal Entry Debit 1 1 11 Issued 10 000 shares common stock for 32 000 cash Cash 32 000 Common Stock 1 1 11 32 000 Purchased land for 19 000 using note payable Land 19 000 Notes Payable 1 1 11 19 000 Receive 12 000 cash for rental fees earned during the month Cash 12 000 Rental fees revenues 1 1 11 12 000 Provided rental service for customer and billed on account Acct receivable 100 Rental fees revenues 1 1 11 Credit 100 Buy supplies on account for 500 Supplies 500 Acct payable 500 Brief Exercise 3 1 a Cash debit b Acct receivable debit c Cash debit Unearned revenue credit Revenue credit Revenue credit
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