Chapter 2 Homework

Submit your answers in CANVAS before it is due

Use the following to answer questions 1 5

Determine if the normal balance is a Debit (D) or a Credit (C). Input only the first letter of the answer (D or C).

	Normal Balance D or C	Account
1	________		Supplies
2	________		Services provided
3	________		Common stock
4	________		Land
5	________		Salaries payable

Use the following to answer questions 6 8

Analyze each transaction. Under each category in the accounting equation, indicate whether the transaction:

A. increases,

B. decreases, or

C. has no effect. The item (a) is provided as an example.

1. Provided services to a customer on account. (Revenue increases causing Stockholders Equity to increase, Assets increase, and no effect on Liabilities).

6. Issue common stock in exchange for cash.

7. Purchased equipment by signing a note payable.

8. Incurred salaries expense for the month, will pay next week.

	Asset	Liability	Stockholders Equity
(a)	A	C	A
6.
7.
8.

9. At the beginning of January, the balance in the Retained Earnings account is $310,000 for TR Corporation. During the month of January, TR had the following external transactions.

(a)	Purchase equipment and pay cash	$100,000
(b)	Provide services to customers in exchange for cash	51,000
(c)	Pay rent for the month	2,000
(d)	Issue common stock for cash	50,000
(e)	Pay workers' salaries for the month	80,000
(f)	Pay dividends to stockholders	75,000
(g)	Provide services to customers on account	66,000

$______________Determine ending Retained Earnings for January 31st.