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PB 1.

LO 3.2Assuming the following account balances, what is the missing value?

Assets $1,150,000; Liabilities 588,000; Equity ?.
PB 2.

LO 3.2LO 3.4Assuming the following account balance changes for the period, what is the missing value?

Assets $73,000; Liabilities 33,000; Common stock 10,000; Dividends 5,000; Revenue 120,000; Expenses ?.
PB 3.

LO 3.2LO 3.4Assuming the following account balance changes for the period, what is the missing value?

Assets ?; Liabilities $110,500; Common stock 60,000; Dividends 15,000; Revenue 785,000; Expenses 234,750.
PB 4.

LO 3.2LO 3.4Identify the financial statement on which each of the following account categories would appear: the balance sheet (BS), the income statement (IS), or the retained earnings statement (RE).

 
  Financial statement Normal balance
Accounts Receivable    
Automobile Expense    
Cash    
Equipment    
Notes Payable    
Service Revenue    
Table 3.20
PB 5.

LO 3.4Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.

 
Transaction Impact 1 Impact 2
Paid balance due for accounts payable    
Charged clients for legal services provided    
Purchased supplies on account    
Collected legal service fees from clients for current month    
Issued stock in exchange for a note receivable    
Table 3.21
PB 6.

LO 3.4Indicate how changes in these types of accounts would be recorded (Dr for debit; Cr for credit).

 
  Debit or credit?
Asset accounts  
Liability accounts  
Common Stock  
Revenue  
Expense  
Table 3.22
PB 7.

LO 3.4Identify the normal balance (Dr for Debit; Cr for Credit) and type of account (A for asset, L for liability, E for equity, E-rev for revenue, E-exp for expense, and E-eq for equity) for each of the following accounts.

 
  Normal balance Account type
Utility Expense    
Accounts Receivable    
Interest Revenue    
Retained Earnings    
Land    
Sales Revenue    
Table 3.23
PB 8.

LO 3.4Indicate the net effect (+ for increase; – for decrease; 0 for no effect) of each of the following transactions on each part of the accounting equation, Assets = Liabilities + Equity. For example, for payment of an accounts payable balance, A (–) = L (–) + E (0).

  1. Payment of principal balance of note payable
  2. Purchase of supplies for cash
  3. Payment of dividends to stockholders
  4. Issuance of stock for cash
  5. Billing customer for physician services provided
PB 9.

LO 3.5Prepare journal entries to record the following transactions. Create a T-account for Cash, post any entries that affect the account, and calculate the ending balance for the account. Assume a Cash beginning balance of $37,400.

  1. May 12, collected balance due from customers on account, $16,000
  2. June 10, purchased supplies for cash, $4,444
PB 10.

LO 3.5Prepare journal entries to record the following transactions. Create a T-account for Accounts Payable, post any entries that affect the account, and calculate the ending balance for the account. Assume an Accounts Payable beginning balance of $7,500.

  1. May 12, purchased merchandise inventory on account. $9,200
  2. June 10, paid creditor for part of previous month’s purchase, $11,350
PB 11.

LO 3.5Prepare journal entries to record the following transactions that occurred in April:

  1. on first day of the month, issued common stock for cash, $15,000
  2. on eighth day of month, purchased supplies, on account, $1,800
  3. on twentieth day of month, billed customer for services provided, $950
  4. on twenty-fifth day of month, paid salaries to employees, $2,000
  5. on thirtieth day of month, paid for dividends to shareholders, $500
PB 12.

LO 3.5Prepare journal entries to record the following transactions that occurred in March:

  1. on first day of the month, purchased building for cash, $75,000
  2. on fourth day of month, purchased inventory, on account, $6,875
  3. on eleventh day of month, billed customer for services provided, $8,390
  4. on nineteenth day of month, paid current month utility bill, $2,000
  5. on last day of month, paid suppliers for previous purchases, $2,850
PB 13.

LO 3.5Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash, indicating the ending balance. Assume no beginning balances in Accounts Payable and Inventory, and a beginning Cash balance of $21,220.

  1. purchased merchandise inventory on account, $9,900
  2. paid vendors for part of inventory purchased earlier in month, $6,500
  3. purchased merchandise inventory for cash, $4,750
PB 14.

LO 3.5Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash, indicating the ending balance. Assume no beginning balances in these accounts.

  1. sold products to customers for cash, $7,500
  2. sold products to customers on account, $12,650
  3. collected cash from customer accounts, $9,500
PB 15.

LO 3.6Prepare an unadjusted trial balance, in correct format, from the following alphabetized account information. Assume all accounts have normal balances.

Accounts payable $3,600; Accounts receivable 45,333; Building 156,000; Cash 50,480; Common Stock 110,000; Dividends 18,000; Equipment 33,500; Fees earned revenue 225,430; Land 18,000; Miscellaneous expense 5,123; Notes payable 85,500; Retained earnings 60,606; Salaries expense 151,900; Supplies 6,800.
PB 16.

LO 3.6Prepare an unadjusted trial balance, in correct format, from the following alphabetized account information. Assume all accounts have normal balances.

Accounts payable $18,000; Accounts receivable 4,000; Automobile 28,000; Cash 19,000; Common Stock 30,000; Dividends 16,000; Equipment 80,000; Insurance expense 8,000; Land 26,000; Notes payable (long term) 55,000; Salaries expense 37,000; Sales revenue 115,000.
PB 17.

LO 3.6Prepare an unadjusted trial balance, in correct format, from the following alphabetized account information. Assume all accounts have normal balances.

Accounts payable $3,600; Accounts receivable 45,333; Building 156,000; Cash 50,480; Common stock 110,000; Dividends 18,000; Equipment 33,500; Fees earned revenue 225,430; Land 18,000; Miscellaneous expense 5,123; Notes payable 85,500; Retained earnings 60,606; Salaries expense 151,900; Supplies 6,800.
PB 18.

LO 3.6Prepare an unadjusted trial balance, in correct format, from the following alphabetized account information. Assume all accounts have normal balances.

Accounts payable $18,000; Accounts receivable 4,000; Automobile 28,000; Cash 19,000; Common stock 30,000; Dividends 16,000; Equipment 80,000; Insurance expense 8,000; Land 26,000; Notes payable (long term) 55,000; Salaries expense 37,000; Sales revenue 115,000.
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