Accounting and Finance Foundations

Unit 5

Accounting and Finance Foundations Unit 5: Accounting Terminology 374

Accounting Terminology

Chapter 14

Student Assignment

Debit and Credit Problems 1–4

Directions:

n Use the T accounts to complete the following problems.

n Use date in parentheses beside each transaction.

n Add up and total debit and credit sides of each account.

n Check your work by making sure debits = credits. Then determine the normal balance

for each account using the forms provided.

Problem 1

June 1 Owner invested $5,000 in business.

2 Business paid rent for the first month of $500.

3 Business bought supplies on account for $350.

4 Sold services on account for $800.

5 Paid $100 on account for supplies bought on June 3rd.

6 Received cash for sales $560.

7 Paid cash for supplies for $100.

8 Owner withdrew $200 for personal use.

9 Received $400 from customers paying on account from June 4th.

10 Purchased supplies on account for $300.

Problem 2

July 1 Owner invested $8,000 in business.

2 Business bought equipment on account for $1,000.

3 Business paid this month’s rent of $1,000.

4 Received cash from account for $1,200.

5 Paid $200 on account for equipment purchased on July 2nd.

6 Sold services on account of $1,600.

7 Owner withdrew $300 for personal use.

8 Received $200 from customers paying on account from July 6th.

9 Purchased supplies on account for $700.

10 Paid cash for supplies for $500.

Lesson 14.8