5
5
7
B
9
D
1
2
3
4
Transaction and Adjusting journal entries and affect on Accounting Equation Assignment 72 points
Instructions: Indicate in the True/False column, whether the journal entry is correct (True) or not correct
rewrite the correct journal entry.
In addition, for each entry, whether it is true or false, (using the correct journal entry), indicate the affect
D= decrease
NC= no change
I = increase
5
-6
69
7
8
19
012345
44
46
47
48
49
50
51
52
53
54
55
4 Record a sale on account for $50
Accounts Receivable
Sales Revenue
5 Purchased a new computer for $300
Equipment/Computer
Cash
50
50
300
300
6 The company paid $4,800, which will cover its rent for the next six months.
At the end of the first month, record the adjusting entry.
Rent Expense
Prepaid Rent
800
800
7 Purchased inventoy on account for $150 (perpetual inventory system)
Inventory
Accounts Payable
150
150
8 Received a $200 utility bill for this month's utilities, but it will not be
paid until next month.
Utilities Expense
200
200
Accounts Payable
or Utilities Payable
9 Record the borrrowing of $18,000 for 6-months at 5%.
Cash
Notes Payable
18000
18000
10 Record the interest incurred at the end of the first month in #9 above
Interest Expense
75
Interest Payable
75
Tru
