Q1. When amounts are correct, the accounting equation, Assets = Liabilities + Stockholders€™ Equity, (_________ / will not) always be in balance. Similarly, Debits (_________/ will not) always equal Credits.
Q2. Assets are (_________/ credit) accounts, which are increased with a (_________/ credit) and decreased with a (debit / _________). Whereas, liabilities and stockholders€™ equity are (debit / _________) accounts, which are increased with a (debit / _________) and decreased with a (_________/ credit).
Q3. Cash is a(n) (_________/ L / SE) account, which is a (_________/ credit) account, which is increased with a (_________/ credit). Therefore, to record an increase of $30,000 in cash, the journal entry should (_________/ credit) cash.
Q4. Common stock is a(n) (A / L / _________) account, which is a (debit / _________) account, which is increased with a (debit / _________). Therefore, to record an increase of $30,000 in common stock, the journal entry should (debit / _________) cash.
ASSETS = LIABILITIES + STOCKHOLDERS€™ EQUITY
STOCKHOLDERS€™ EQUITY = COMMON STOCK +
RETAINED EARNINGS
Beginning RETAINED EARNINGS + NET INCOME - DIVIDENDS =
Ending RETAINED EARNINGS
Beginning R/E + (REVENUE - EXPENSES) - DIVIDENDS = Ending RETAINED EARNINGS
Debit Accounts
Credit Accounts
Expenses
Stockholders€™ Equity
Dividends
Revenue
Q5. Retained Earnings is increased by net income (revenues €“ expenses) and decreased by dividends. Hence, revenues (___________ / decrease) retained earnings whereas expenses and dividends (increase / ___________) retained earnings.
Q6. Retained Earnings is a Stockholders€™ Equity account. Because revenue increases stockholders€™ equity, revenue is recorded with a (debit / _________). Because expenses and dividends decrease stockholders€™ equity, they are recorded with a (_________/ credit). In summary, revenue is increased with a credit and expenses and dividends are increased with a debit.
Debit Accounts
Credit Accounts
Assets
Liabilities
Expenses
Stockholders€™ Equity
Dividends
Revenues
Q7. The events below occurred during July for Doogie€™s Dog Grooming Corporation. For each transaction, record the appropriate journal entry. If an event is not a transaction, record €œNo Transaction.€ Use the Chart of Accounts introduced in the previous Activity. Transaction #1 is completed for you.

Q8. Compute the ending balance of the cash account below, noting whether the balance is debited or credited.

Q9. Compute total debits and total credits and record in the last row below. Total debits are completed for you.
Q10. As a check to the accuracy of the postings, make certain that total debits equal total credits. If not, please find the error and correct. Do total debits equal total credits? (_________/ No)

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Doogie's Dog Grooming Corporation GENERAL JOURNAL JULY Date Accounts Debit Credit TJE #1 July 1 Doogie's Dog Grooming Corporation began by issuing 1,000 shares of common stock in exchange for S30,000 cash. July Cash 30,000 Common stock 30,000 TJE #2 July 1 Doogie purchased a grooming table and other equipment for $18,000 cash Cash 18,000 TIE #3 July 1 Dooge purchased a one-year insurance policy for $2.400 cash. TIE #4 July 1 Doogie ordered doggie treats and other supplies totaling $1.200 TIE #5 July 6 The doggie treats and other supplies arrived along with a bill for $1,200 TIE #6 July Doogle's provided dog grooming services for $20,000 cash Doogie's Dog Grooming Corporation GENERAL LEDGER JULY 200 Accounts Payable 500 D epreciation 100 Cash 300 Common Stock Expense (T1)30,0 (T2) 18,000 1,200(T5) 30,000(TI) (Al)300 (T6) 20,000 2,400 (T3) 3,500 (T7) 400 (T8) 25,700 110 Accounts 210 Rent 350 Retained 510 Insurance Receivable Payable Earnings Expense (A2)200 220 Wages 520 Rent 120 Supply Inventory (T5)1,20 Payable 0 700 A3) (T8)400 (T7)1,500 Bal 500 530 Supply Expense 130 Equipment (T2) 18,000 Income Summ ary (A3)700 140 Accumulated 150 Prepaid 540 Wage Depreciation 400 Revenue Expense Insurance (T3) 2,40 (A2) (T7) (A1)300 200 20,000 (T6) 2,000 Bal 2.20 Doogie's Dog Grooming Corporation UNADJUSTED TRIAL BALANCE- July 31 Debit S25,700 0 Account Credit 100 110 120 130 140 150 200 210 Cash Accounts receivable Supply inventory Equipment Accumulated depreciation Prepaid insurance Accounts payable Rent payable 220 300 350 360 400 500 510 520 530 540 Wages payable Common stock Retained earnings Dividends Revenue Depreciation expense Insurance expense Rent expense Supply expense Wage expense Total 0- 0- $51,200