Study Guide 2. Part One Identifying Accounting Terms. Column II. Answers. Column I

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1 Study Guide 2 Name Identifying Accounting Terms Analyzing Transactions into and Parts Identifying Changes in Accounts Total Perfect Score 5 Pts. 20 Pts. 15 Pts. 40 Pts. Your Score Part One Identifying Accounting Terms Directions: Select the one term in Column I that best fits each definition in Column II. Print the letter identifying your choice in the Answers column. Column I A. chart of accounts Column II 1. An accounting device used to analyze transactions. (p. 29) Answers 1. E B. credit 2. An amount recorded on the left side of a T account. (p. 29) 2. C C. debit 3. An amount recorded on the right side of a T account. (p. 29) 3. B D. normal balance 4. The side of the account that is increased. (p. 29) 4. D E. T account 5. A list of accounts used by a business. (p. 32) 5. A COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING Chapter 2 17

2 Part Two Analyzing Transactions into and Parts Directions: Analyze each of the following transactions into debit and credit parts. Print the letter identifying your choice in the proper Answers columns. Account Titles A. B. Accounts Receivable Imagination Station C. D. Prepaid Insurance E. Accounts Payable Suburban Office F. J. Nichols, Capital G. J. Nichols, Drawing H. I. Rent Expense 1 2. Received cash from owner as an investment. (p. 32) 3 4. Paid cash for supplies. (p. 33) 5 6. Paid cash for insurance. (p. 34) 7 8. Bought supplies on account from Suburban Office. (p. 35) Paid cash on account to Suburban Office. (p. 36) Received cash from sales. (p. 38) Sold services on account to Imagination Station. (p. 39) Paid cash for rent. (p. 40) Received cash on account from Imagination Station. (p. 41) Paid cash to owner for personal use. (p. 42) Answers 1. A 2. F 3. C 4. A 5. D 6. A 7. C 8. E 9. E 10. A 11. A 12. H 13. B 14. H 15. I 16. A 17. A 18. B 19. G 20. A 18 Working Papers TE CENTURY 21 ACCOUNTING, 9TH EDITION

3 Name Date Class Part Three Identifying Changes in Accounts Directions: For each of the following items, select the choice that best completes the statement. Print the letter identifying your choice in the Answers column. 1. The values of all things owned (assets) are on the accounting equation s (A) left side (B) right side (C) credit side (D) none of these. (p. 28) 2. The values of all equities or claims against the assets (liabilities and owner s equity) are on the accounting equation s (A) left side (B) right side (C) debit side (D) none of these. (p. 28) 3. An amount recorded on the left side of a T account is a (A) debit (B) credit (C) normal balance (D) none of these. (p. 29) 4. An amount recorded on the right side of a T account is a (A) debit (B) credit (C) normal balance (D) none of these. (p. 29) 5. The normal balance side of any asset account is the (A) debit side (B) credit side (C) right side (D) none of these. (p. 29) 6. The normal balance side of any liability account is the (A) debit side (B) credit side (C) left side (D) none of these. (p. 29) 7. The normal balance side of an owner s capital account is the (A) debit side (B) credit side (C) left side (D) none of these. (p. 29) 8. s must equal credits (A) in a T account (B) on the equation s left side (C) on the equation s right side (D) for each transaction. (p. 32) 9. s in an asset account are shown on a T account s (A) debit side (B) credit side (C) right side (D) none of these. (p. 30) 10. s in an asset account are shown on a T account s (A) debit side (B) credit side (C) left side (D) none of these. (p. 30) 11. s in any liability account are shown on a T account s (A) debit side (B) credit side (C) right side (D) none of these. (p. 30) 12. s in a revenue account are shown on a T account s (A) debit side (B) credit side (C) left side (D) none of these. (p. 38) 13. The normal balance side of any revenue account is the (A) debit side (B) credit side (C) left side (D) none of these. (p. 38) 14. The normal balance side of any expense account is the (A) debit side (B) credit side (C) right side (D) none of these. (p. 40) 15. The normal balance side of an owner s drawing account is the (A) debit side (B) credit side (C) right side (D) none of these. (p. 42) Answers 1. A 2. B 3. A 4. B 5. A 6. B 7. B 8. D 9. B 10. A 11. A 12. B 13. B 14. A 15. A COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING Chapter 2 19

4 Study Skills Attendance and Promptness Being in the proper place at the proper time is certainly one of the most important things you can do while you are in school. Attendance and promptness affect your grades. If you are not in class, you cannot possibly get all the information that you need to complete all the accounting activities in your lessons. If you are not prompt, you are sure to miss valuable information. A Good Relationship Attendance and promptness also affect the teacher-student relationship. When you are in your seat before class begins every day, you are saying to the teacher, I believe you have something important to say, and I am ready to learn. This is the foundation of a good relationship. When you miss a class, you are in effect saying to the teacher, I do not believe that the class is worth attending. This is precisely the wrong message to send. You might ask, How many absences may I have in this class? When you do, you are telling the teacher that you want to do exactly what is required and no more. This is also the wrong message to send. If you arrive late, you may distract the teacher and all other members of the class. This can result in the wrong kind of attention as well as embarrassment. When some students are a few minutes late, they do not go to the class at all. Even though entering late is not good, it is still better than missing class altogether. Causes of Absence and Tardiness There are a number of things that could cause us to miss a class. Serious illness could be our excuse, but it is seldom the actual cause. Family responsibilities often are blamed, but the real problem is usually a lack of planning. Sometimes we are not prepared for class, and we would rather miss the class than admit we have not completed an assignment. This can be corrected easily by preparing for class. There are also a number of reasons for being late. Car trouble is often the excuse given, but in most cases the actual reason is a lack of proper planning. Not enough time was set aside to allow for any problems that could develop. Preparing properly and allowing enough time to get to class can usually prevent absence and lateness. It makes little sense to miss class or to be late. Getting to class on time every day is the easiest part of making a good grade and a good impression. The good study skills you develop in your accounting class will be valuable as tools to apply in the workplace. Attendance and promptness are key success drivers for all employees. 20 Working Papers TE CENTURY 21 ACCOUNTING, 9TH EDITION

5 Name Date Class 2-1 WORK TOGETHER, p. 31 Determining the normal balance and increase and decrease sides for accounts Accounts Payable Miller Accounts Rec. Christine Kelly Accounts Pay. Wayne Office Jeff Dixon, Capital Prepaid Insurance Chapter 2 Analyzing Transactions into and Parts 21

6 2-1 ON YOUR OWN, p. 31 Determining the normal balance and increase and decrease sides for accounts Prepaid Insurance Accounts Receivable Lee McCann Accounts Payable Topline Accounts Receivable Sonya Lopez Vickie Monson, Capital 22 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

7 Name Date Class 2-2 WORK TOGETHER, p. 37 Analyzing transactions into debit and credit parts Apr. 1. Apr. 6. 5, Kathy Bergum, Capital Accts. Pay. Bales 5, Apr. 2. Apr. 9. Accts. Pay. Bales Apr. 5. Prepaid Insurance Chapter 2 Analyzing Transactions into and Parts 23

8 2-2 ON YOUR OWN, p. 37 Analyzing transactions into debit and credit parts Sept. 1. Sept. 6. 2, Derrick Hoffman, Capital 2, Accts. Pay. Nash Supply Sept. 4. Prepaid Insurance Sept. 11. Accts. Pay. Nash Supply Sept Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

9 Name Date Class 2-3 WORK TOGETHER, p. 44 Analyzing revenue, expense, and withdrawal transactions into debit and credit parts Apr. 10. Apr Accts. Rec. Sam Erickson Apr. 11. Accts. Rec. Sam Erickson Apr. 20. Kathy Bergum, Drawing Apr. 14. Rent Expense Chapter 2 Analyzing Transactions into and Parts 25

10 2-3 ON YOUR OWN, p. 44 Analyzing revenue, expense, and withdrawal transactions into debit and credit parts Sept , Sept , Accts. Rec. Jon Roe Sept. 15. Accts. Rec. Jon Roe Sept. 21. Derrick Hoffman, Drawing Sept. 16. Utilities Expense Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

11 Name Date Class 2-1 APPLICATION PROBLEM, p. 46 Determining the normal balance and increase and decrease sides for accounts Account Account Classification Account s Normal Balance Side Side Accts. Rec. Jens Olefson Accts. Rec. Toni Nolan Prepaid Insurance Accts. Pay. United Co. Juan Reo, Capital Liability Chapter 2 Analyzing Transactions into and Parts 27

12 2-2 APPLICATION PROBLEM, p. 46 Analyzing transactions into debit and credit parts Mar. 1. Mar. 5. 1, Hal Rosen, Capital 1, Mar. 1. Prepaid Insurance Mar. 8. Accts. Pay. All Star Company Mar Accts. Pay. All Star Company Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

13 Name Date Class 2-3 APPLICATION PROBLEM, p. 47 Analyzing revenue, expense, and withdrawal transactions into debit and credit parts Mar. 11. Mar. 18. Hal Rosen, Drawing 2, , Mar. 12. Advertising Expense Mar , Accts. Rec. Dominik Field 1, Mar. 14. Accts. Rec. Dominik Field 1, , Chapter 2 Analyzing Transactions into and Parts 29

14 2-4 APPLICATION PROBLEM, p. 47 Analyzing revenue, expense, and withdrawal transactions into debit and credit parts Mar. 25. Mar. 28. Hal Rosen, Drawing 1, , Mar. 26. Accts. Rec. Dominik Field Mar Accts. Rec. Dominik Field Mar. 27. Advertising Expense Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

15 Name Date Class 2-5 MASTERY PROBLEM, p. 48 Analyzing transactions into debit and credit parts (1) 2, (4) (11) 1, (11) (13) (30) (2) (4) (5) (10) (15) (16) (22) (23) (26) Vickie Lands, Capital (1) 2, (11) 1, Vickie Lands, Drawing (26) Accts. Rec. Alston Goff (8) (13) (4) (8) (11) (25) Accts. Rec. Josie Leveson (25) (30) Advertising Expense (23) (4) (9) (12) Miscellaneous Expense (15) Prepaid Insurance (5) Rent Expense (2) Accts. Pay. North End (12) Repair Expense (10) Accts. Pay. Bethany (16) (9) Utilities Expense (22) Chapter 2 Analyzing Transactions into and Parts 31

16 2-6 CHALLENGE PROBLEM, p. 49 Analyzing transactions recorded in T accounts Trans. No Accounts Affected Account Classification Entered in Account as a Adriana Janek, Capital Utilities Expense Miscellaneous Expense Accts. Pay. Tri City Advertising Expense Rent Expense Accts. Pay. Tri City Adriana Janek, Drawing Accts. Rec. Ralph Dahl (Expense) (Expense) Liability (Revenue) (Expense) (Expense) (Revenue) (Revenue) Liability (Revenue) Description of Transaction Received cash from owner as an investment Paid cash for utilities Paid cash for miscellaneous expense Bought supplies on account Received cash from sales Paid cash for advertising Paid cash for rent Received cash from sales Received cash from sales Paid cash for supplies Paid cash on account Paid cash to owner for personal use Sold services on account 32 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING