Chapter 4 The Accounting Cycle: Journals and Ledgers - Application Questions Group A AP-1A LO For the following list of accounts, indicate which side of the T-account causes an increase or decrease. The first account has been done for you. Account Title Cash Advertising Expense Service Revenue Unearned Revenue Accounts Receivable Accounts Payable Owner's Capital Owner's Withdrawals Prepaid Rent Rent Expense Debit Increase Credit Decrease AP-2A LO 1 For each of the following accounts, identify whether the normal balance is a debit (DR) or a credit (CR). Cash Equipment Unearned Revenue Rent Expense Bank Loan Prepaid Expenses Service Revenue Accounts Payable AP-3A LO 13 Esteem Hall Rentals has several banquet rooms that are available to rent. During June 2021, Esteem had the following transactions. Jun 1 Jun 3 Jun 6 Jun 10 Jun 15 Jun 20 Jun 26 Rented one of the banquet rooms for use on June 1 to a large corporation for $4,500 on account Received a telephone bill for $250, which will be paid next month Paid an employee's salary of $1,200 Received $3,000 cash from customers paying in advance for a rental that will occur in August Paid $6,000 cash in advance for six months of rent Received a $10,000 loan from the bank Purchased equipment with $8,000 cash Complete the table to analyze each transaction. The Accounting Cycle: Journals and Ledgers Chapter 4 Account Name Category Increase or Decrease Debit or Credit Jun 1 Jun 3 Jun 6 Jun 10 Jun 15 Jun 20 Jun 26 AP-4A LO 13 Bendari City Tours had the following transactions for the month of November 2021. Nov 1 Nov 4 Nov 9 Nov 16 Nov 25 Purchased supplies for $100 on account Received $4,200 cash from clients as payment for tours Received a telephone bill in the mail for $150 Paid an employee's salary of $3,500 in cash Collected $500 from the school board, which owed money for previous tours Complete the table to analyze each transaction. Nov 1 Nov 4 Nov 9 Nov 16 Nov 25 Account Name Category Increase or Decrease Debit or Credit AP-5A LO 34 Kick-off Sports offers various recreational sports activities for children. During May 2021, the following transactions took place. Received a maintenance bill for $500, which will be paid next month Received $2,750 cash for services provided Borrowed $4,000 cash from the bank May 3 May 3 May 4 May 4 May 10 May 10 Paid telephone expenses of $150 for the month with cash May 11 Paid $700 cash to reduce the amount owed to a supplier May 15 Paid $25 interest on the bank loan Received $220 from a customer who owed money for services already provided Prepaid $1,200 cash for insurance for one year Prepare the journal entries for the transactions. Date Account Title and Explanation PR Debit Credit 129 Chapter 4 AP-9A LO 16 The Accounting Cycle: Journals and Ledgers Events Extraordinaire, an event-planning company owned by Steven Upton, showed these accounts and their corresponding normal balances on May 31, 2021. Account Title Balance Upton, Capital $23,500 Insurance Expense 900 Accounts Payable 15,500 Service Revenue 8,900 Equipment 34,500 Supplies Expense 3,000 Cash 6,400 Salaries & Wages Expense 4,000 Rent Expense 3,000 Upton, Withdrawals 3,000 Utilities Expense 1,300 Bank Loan 10,200 2,000 Prepaid Insurance Prepare Events Extraordinaire's trial balance at May 31, 2021. AP-6A LO 34 Rejuvenation Spa is a sole proprietorship owned by Claire Sawyer. During the month of July 2021, the following transactions took place. Jul 3 Jul 4 Jul 6 Jul 10 Jul 11 Jul 15 Jul 20 Jul 21 Jul 31 Jul 31 Provided services to a customer on account worth $3,600 Borrowed $2,000 cash from the bank Provided services to a customer and received $2,400 in cash Received a telephone bill for $250, which will be paid later Paid $600 cash to reduce the amount owed to a supplier Collected $1,800 cash from customers owing on account Paid the telephone bill from July 10 Paid a portion of the bank loan principal with $1,500 cash Paid salaries for the month with $1,600 cash Purchased equipment for $1,900, which will be paid later Prepare the journal entries for the transactions. Date Account Title and Explanation PR Debit Credit