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ACCOUNTING 14 JOURNAL ENTRIES - 18 POINTS On January 1, 2019 Greg, Alice, April and Peter form GAAP Enterprises, a consulting firm assisting confused accountants in Generally Accepted Accounting Principles. On January 1, 2019 the owners of GAAP Enterprises each contribute $20,000 and are issued common stock. On December 1, 2019 GAAP Enterprises purchases $30,000 of computer equiment The company pays 20% down and finances the rest on a note payable On December 31, 2019 GAAP Enterprises receives $10.000 deponit for con Services to be performed in the next accounting period REQUIRED - Use proper from to record transactions A-C. The Chan of Accounts is listed below. Not all accounts will be used Date Account Debit C Date Account Debit Credit Debit Account Date ACCOUNT TYPES AND TRUE OR FALSE - 12 POINTS REQUIRED: LIST THE ACCOUNT TYPE (EITHER ASSET, LIABILITY, EQUITY, REVENUE, OR EXPENSE) AND THE EXPECTED NORMAL BALANCE (DEBIT OR CREDIT) FOR EACH ACCOUNT LISTED. ACCOUNT TYPE RENT EXPENSE NORMAL BALANCE UNEARNED INCOME COMMON STOCK EQUIPMENT RETAINED EARNINGS Circle True or False: A) A ledger tracks the increases and decreases of an account similar to T-Accounts TRUE FALSE B) The GAAP principle of Matching refers to expenses. TRUE FALSE C) Dividends are an expense and reported on the income statement TRUE FALSE D) Liability accounts are increased with a credit TRUE FALSE TRUE FALSE E) Owners of a business formed as a corporation are personally liable for the corporation's liabilities. TRUE FALSE F) The income statement is a snapshot of a company's assets. liabilites and equity at a specific point in time. G) Revenue Recognition is a GAAP term meaning a company recognizes revenue at the time of customer payment. Page 12