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