All accounts belong in one of the following classifications: Asset, Liability, Owner’s Equity. In your working papers, indicate the classification for each of the following accounts. 1. John Jones, Capital 2. Cash in Bank 3. Accounts Receivable 4. Accounts Payable 5. Office Equipment 6. Delivery Equipment 7. Camping Equipment 8. Building 9. Land 10. Computer Equipment

Listed here are the account names and balances for Wilderness Rentals. Accounts Payable $7000 Accounts Receivable$2,000 Camping Equipment $12,000 Cash in Bank$5,000 Office Equipment 3,000 Ronald Hicks, Capital $15,000. Using these account names and balances: 1. List and total the assets of the business. 2. Determine the amount owed by the business. 3. Give the amount of the owner’s equity in the business.

The following accounts appear on the work sheet for Lee’s Bike Shop.

$$\begin{matrix} \text{Store Equipment} & \text{Scott Lee, Capital} & \text{Scott Lee, Withdrawals}\\ \text{Rent Expense} & \text{Advertising Expense} & \text{Maintenance Expense}\\ \text{Service Fees Revenue} & \text{Accts. Rec. - John Langer} & \text{Office Supplies}\\ \text{Accts. Pay.—Rubino Supply} & \text{ } & \text{ }\\ \end{matrix}$$

Use a form similar to the one below in your working papers. Classify each account and use an “X” to indicate whether the account balance is entered in the Debit or the Credit column of the Trial Balance section. The first account is completed as an example.

$$\begin{array}{|c|c|l|} \hline \text{Account Name} & \text{Classification} & \text{Trial Balance}\\ \hline \text{ } & \text{ } & \text{Debit | Credit}\\ \hline \text{Store Equipment} & \text{Asset} & \text{X}\\ \hline \end{array}$$

Caroline Palmer uses the following accounts in her San Francisco–Los Angeles commuter shuttle service.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{Cash in Bank} & \text{Caroline Palmer, Capital}\\ \text{Advertising Expense} & \text{Accounts Receivable}\\ \text{Caroline Palmer, Withdrawals} & \text{Food Expense}\\ \text{Airplanes} & \text{Flying Fees}\\ \text{Fuel and Oil Expense} & \text{Accounts Payable}\\ \text{Repairs Expense} & \text{ }\\ \end{matrix}$$

In the form provided in your working papers, provide the following information for each account. The first account is completed as an example. 1. Classify the account as an asset, liability, owner’s equity, revenue, or expense account. 2. Indicate whether the increase side is a debit or a credit. 3. Indicate whether the decrease side is a debit or a credit. 4. Indicate whether the account has a normal debit balance or a normal credit balance.

$$\begin{matrix} \text{Account} & \text{Account} & \text{Increase} & \text{Decrease} & \text{Normal}\\ \text{Name} & \text{Classification} & \text{Side} & \text{Side} & \text{Balance}\\ \hline \text{Cash in Bank} & \text{Asset} & \text{Debit} & \text{Credit} & \text{Debit}\\ \end{matrix}$$

Speedy Appliance Repair, owned by R. Lewis, uses the following accounts:

$$\begin{matrix} \text{General Ledger}\\ \hline \text{Cash in Bank}\\ \text{Accounts Receivable}\\ \text{Office Equipment}\\ \text{Accounts Payable}\\ \text{R. Lewis, Capital}\\ \end{matrix}$$

In the form provided in your working papers: 1. Classify each account as an asset, liability, or owner’s capital account. 2. Indicate whether the increase side is a debit or a credit. 3. Indicate whether the decrease side is a debit or credit. 4. Indicate whether the normal balance for the account is a debit or credit balance. The Cash in Bank account is completed as an example.

$$\begin{matrix} \text{Account} & \text{Account} & \text{Increase} & \text{Decrease} & \text{Normal}\\ \text{Name} & \text{Classification} & \text{Side} & \text{Side} & \text{Balance}\\ \hline \text{Cash in Bank} & \text{Asset} & \text{Debit} & \text{Credit} & \text{Debit}\\ \end{matrix}$$

Hot Suds Car Wash uses the following accounts:

$$\begin{matrix} \text{Assets} & \text{$=$} & \text{Liabilities} & \text{$+$} & \text{Owner’s Equity}\\ \hline \text{Cash in Bank} & \text{ } & \text{Accounts Payable} & \text{ } & \text{Regina Delgado,}\\ \text{Accounts Receivable} & \text{ } & \text{ } & \text{ } & \text{Capital}\\ \text{Office Equipment} & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Office Furniture} & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Car Wash Equipment} & \text{ } & \text{ } & \text{ } & \text{ }\\ \end{matrix}$$

Use a form similar to the one that follows. For each transaction: 1. Identify the accounts affected. 2. Classify the accounts. 3. Determine the amount of the increase (+) or decrease (-) for each account affected. The first transaction is completed as an example.

$$\begin{matrix} \text{Trans.} & \text{Accounts } & \text{Classification} & \text{Amount of Increase (+)}\\ \text{ } & \text{Affected} & \text{ } & \text{or Decrease (-)}\\ \hline \text{1.} & \text{Cash in Bank} & \text{Asset} & \text{$+\$25,000$}\\ \text{ } & \text{Regina} & \text{ } & \text{ }\\ \text{ } & \text{Delgado,} & \text{ } & \text{ }\\ \text{ } & \text{Capital} & \text{Owner’s Equity} & \text{$+\$25,000$}\\ \end{matrix}$$

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{1.Regina Delgado, the owner, invested $\$25,000$ cash in the business.}\\ \text{4} & \text{2.Bought car wash equipment with cash for $\$12,000$.}\\ \text{5} & \text{3.Purchased, on account, $\$2,500$ of office equipment.}\\ \text{10} & \text{4.Wrote a check for the monthly rent, $\$800$.}\\ \text{12} & \text{5.Received cash for services performed, $\$1,000$.}\\ \text{15} & \text{6. The owner withdrew $\$600$ cash from the business for personal use.}\\ \text{20} & \text{7. Purchased a desk for $\$1,000$, paying $\$200$ cash and agreeing to pay the balance of $\$800$ in 30 days.}\\ \text{25} & \text{8. Provided services worth $\$600$ on account.}\\ \end{array}$$