Concept explainers
a.
Explain whether the fees income account is a permanent account or temporary account.
b.
Explain whether the J.J. drawing account is a permanent account or temporary account.
c.
Explain whether Accounts payable is a permanent account or temporary account.
d.
Explain whether accounts receivable is a permanent account or temporary account.
e.
Explain whether J.J. capital account is a permanent account or temporary account.
f.
Explain whether prepaid rent account is a permanent account or temporary account.
g.
Explain whether cash account is a permanent account or temporary account.
h.
Explain whether advertising expense account is a permanent account or temporary account.
i.
Explain whether utilities expense account is a permanent account or temporary account.
j.
Explain whether equipment account is a permanent account or temporary account.
k.
Explain whether salaries expense account is a permanent account or temporary account.
l.
Explain whether prepaid insurance account is a permanent account or temporary account.
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Chapter 3 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
- Which item will appear on the credit side of ledger account? Select one: a. Rent expense b. Purchases c. Sales d. Cash receivedarrow_forwardWhich of the following accounts has a normal credit balance? a. Accounts Receivable b. Yura Wun, Capital X c. Supplies Expense d. Copyrightsarrow_forwardInterest received in advance account is a a. Nominal Account b Real Account C.Artificial Personal Account O d. Representative Personal Accountarrow_forward
- Which one of the four methods of payments creates an accounts receivable? Select one: a. cash in advance b. open account c. draft d. letter of creditarrow_forwardWhich of the following entries records the payment of an account payable? a.debit Cash; credit Accounts Payable b.debit Cash; credit Supplies Expense c.debit Accounts Receivable; credit Cash d.debit Accounts Payable; credit Casharrow_forwardState which account title the following terminologies belong: A. Asset account title, B. Liability Account Title C. Income Account title D. Expense Account title E. Capital Account title 1. Sales 2. Drawing 3. Cash 4. Accounts Receivable 5. Notes Payable 6. Inventory 7. Salaries and Wages 8. Salaries Payable 9. Taxes and Licenses 10. Notes Receivablearrow_forward
- Which of the following best describes the classification and normal balance of the accounts receivable account? Select one: a. Asset, Debit b. Liability, credit c. Revenue, credit d. Owner's equity, debitarrow_forwardThe journal entry to record a payment on account willa. debit Accounts Payable and credit Retained Earnings.b. debit Expenses and credit Cash.c. debit Cash and credit Expenses.d. debit Accounts Payable and credit Cash.arrow_forwardA credit is used to increase which of the following accounts? a. Dividends. b. Insurance Expense. c. Cash. d. Service Revenue.arrow_forward
- SUBJECT: Financial Accounting and Reporting Instruction: Choose the Debit and Credit Accounts of the following transactions. TRANSACTION: Purchased supplies on account1. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 2. Credit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation TRANSACTION: Paid travelling expenses to pay business permit3. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 4. Credit *a. Cash In Bankb.…arrow_forwardWhich of the following transactions would be recorded if using the accrual basis ofaccounting but not if using the cash basis of accounting?a. Borrowing moneyb. Paying off loansc. Purchasing inventory on accountd. Collecting customer paymentsarrow_forwardestion A "receipt on account" results in a credit to: An A/P account Bank An A/R account Capitalarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College