Accounting and Finance Foundations

Unit 5

Accounting and Finance Foundations Unit 5: Accounting Terminology 375

Accounting Terminology

Chapter 14

Problem 3

August 1 Owner invested $6,000 cash into business.

2 Business paid this month’s rent of $1,300.

3 Business bought supplies for $500 on account.

4 Received cash from account for services provided for $1,700.

5 Business paid utilities for $180.

6 Paid $200 on account for supplies bought on August 3rd.

7 Provided services on account for $2,100.

8 Owner withdrew $500 for personal use.

9 Received $300 from customers paying on account from August 7th.

10 Purchased supplies on account for $300.

11 Paid cash for prepaid insurance for $500.

Problem 4

September 1 Owner invested $7,000 cash.

2 Sold services on account for $2,500.

3 Business paid rent for $850.

4 Received $500 cash from customer paying on account from September 2nd.

5 Business paid wages (Wages Expense) for $900.

6 Sold services on account for $1,860.

7 Purchased supplies on account for $400.

8 Owner withdrew $600 for personal use.

9 Paid cash for prepaid insurance for $700.

10 Paid $200 on account for supplies bought on September 7th.

Student Assignment

Lesson 14.8 Debit and Credit Problems 1–4 (cont’d)