Mike’s Pancake Shop has balances in the following accounts at the end of May:

1.   Supplies                                                 6.    Owner’s Capital

2.   Accounts Receivable                          7.    Prepaid Insurance

3.   Unearned Revenue                             8.    Equipment

4.   Salaries Payable                                  9.    Accounts Payable

5.   Sales Revenue                                  10.    Notes Payable

Required:

For each of the accounts indicate:

a) the type of account (Asset, Liability, Owner's capital, Owner’s drawings, Revenue, Expense),

b) the debit and credit effects, and

c)    the normal account balances.

Hannah Steel has operated a lawn care business for 3 months. The following transactions occurred in the fourth month:

1. Hannah decides that the business needs a new vehicle. A truck is purchased for $20,000 and financed by a note payable for the full amount.
2. Hannah invested $5,000 of her own funds in the business.
3. Invoices to customers were issued for services completed. The total invoices amount to $4,500.
4. Paid $350 on account for supplies purchased the prior month.
5. Collected $3,750 from customers for work completed and invoiced the prior month.
6. Paid wages of $250 to an assistant.
7. Received $300 deposit from a new customer for whom work will not be performed until next month

Required:

For each transaction, complete the information in the following table:

Transaction:	1	2	3	4	5	6	7
Account debited (name)
Type of account (asset, liability, owner’s equity)
Normal balance of the account
Is the account increased or decreased?
Account credited (name)
Type of account (asset, liability, owner’s equity)
Normal balance of the account
Is the account increased or decreased?

Answer rating: 100% (QA)

Transaction 1 2 3 4 5 Account Debited Name Equipment Cash Account... View the full answer