2024 – PART 1 Determine the account type Asset Liability or Owner s Equity for each of the account names listed in

 

PART 1:

Determine the account type (Asset, Liability, or Owner’s Equity) for each of the account names listed in the Excel workbook in the T-account worksheet. Identify the normal balance (debit or credit) for the account. 

PART 2: 

Analyze the given transactions using the T-accounts provided. Remember that each transaction will affect at least 2 accounts and your debits must equal your credits after each transaction!

November Business Transactions: 

3rd: J. Jones visits her local bank and withdraws $50,000 from her personal savings account, depositing the cash into a new bank account in the name of the business, Smith Consultants.

5th: Jones Consultants issues check 1001 for $2,000 to purchase computer equipment from Digital Warehouse, Inc.

6th: Jones Consultants issues check 1002 to Property, Inc. to pay the current month’s rent due of $1,000 as well as prepay rent (at $1,000 per month) for the months of December and January.

10th: Jones Consultants issues check 1003 to purchase office furniture in the amount of $3,500 from Furniture Depot.

11th: Jones Consultants purchases $4,000 of computer equipment from Elite Computing on account due in 90 days. Elite Computing issues invoice 7964.

14th: Jones Consultants performs services to cash clients for $1,200.

17th: Jones Consultants performs services to charge account client, Speedy Freight, in the amount of $3,000. Invoice 101 is issued and is receivable in 30 days.

19th: Jones Consultants issues check 1004 to State Power Company for the November utility bill in the amount of $500.

20th: Jones Consultants performs services to cash clients for $6,000.

25th: Jones Consultants issues J. Jones check 1005 as a draw for her personal use in the amount of $4,000.