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187) Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. 1. 2. 3. 4. 5. 6.

Accounts Payable Accounts Receivable Cash Consulting Fees Earned Office Supplies Office Supplies Expense

Example: Completed consulting work for a client who will pay at a later date. A. Received cash in advance from a customer for designing a building B. Purchased office supplies on credit. C. Paid for the supplies purchased in B. D. Received the telephone bill of the business and immediately paid it. E. Paid for a 3-year insurance policy Answer: Debit A 3 B 5 C 1 D 7 E 12

7. 8. 9. 10. 11. 12.

Telephone Expense Unearned Revenue Miley Block, Capital Miley Block, Withdrawals Insurance Expense Prepaid Insurance

Debit

Credit

2

4

Credit 8 1 3 3 3

Difficulty: 3 Hard Topic: Analyzing Transactions Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements. Bloom's: Apply AACSB/Accessibility: Analytical Thinking / Keyboard Navigation AICPA: BB Industry; FN Measurement

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