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188) Drew Castle is an insurance appraiser. Shown below are (a) several accounts in his ledger with each account preceded by an identification number, and (b) several transactions completed by Castle. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. 1. Accounts Payable 2. Accounts Receivable 3. Appraisal Fees Earned 4. Cash 5. Insurance Expense 6. Office Equipment 7. Office Supplies

8. Office Supplies Expense 9. Prepaid Insurance 10. Salaries Expense 11. Telephone Expense 12. Unearned Appraisal Fees 13. Drew Castle, Capital 14. Drew Castle, Withdrawals

Example: Completed an appraisal for a client who promised to pay at a later date. A. Received cash in advance for appraising a hail damage claim……………………….. B. Purchased office supplies on credit……... C. Drew Castle withdrew cash from the business for a personal vacation.……… D. Received the phone bill of the business and immediately paid it………... E. Paid the salary of the office assistant…. F. Paid for the supplies purchased in transaction B…..

Debit

Credit

2

3

G. Completed an appraisal for a client and immediately collected cash for the work performed…………..

189) List the steps in processing transactions. 190) Describe what source documents are and the purpose they serve in a business. 191) What are the three groups of accounts shown on an unclassified balance sheet and define each group? 192) Explain the difference between a general ledger and a chart of accounts. 193) Explain debits and credits and their role in the accounting system of a business. 194) Explain the debt ratio and its use in analyzing a company's financial condition. 195) Explain the recording and posting processes. 44 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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Test Bank for Fundamental Accounting Principles 24th Edition Wild  

Fundamental Accounting Principles 24th Edition Wild Test Bank 2019 (9781259916960) (1259916960). Instant test bank download. Download from h...

Test Bank for Fundamental Accounting Principles 24th Edition Wild  

Fundamental Accounting Principles 24th Edition Wild Test Bank 2019 (9781259916960) (1259916960). Instant test bank download. Download from h...

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