Question

What is the normal balance (debit or credit) of assets, liabilities, stockholders' equity, revenues, and expenses?

Solutions

Verified

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

Related questions

accounting

Sandra's Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October.

DateTransactionsUnitsCost per UnitTotal CostOctober 1Beginning inventory6$900$5,400October 4Sale4  October 10Purchase59104,550October 13Sale3  October 20Purchase49203,680October 28Sale7  October 30Purchase79306,510    $20,140\begin{matrix} \text{Date} & \text{Transactions} & \text{Units} & \text{Cost per Unit} & \text{Total Cost}\\ \hline \text{October 1} & \text{Beginning inventory} & \text{6} & \text{$\$ 900$} & \text{$\$ 5,400$}\\ \text{October 4} & \text{Sale} & \text{4} & \text{ } & \text{ }\\ \text{October 10} & \text{Purchase} & \text{5} & \text{910} & \text{4,550}\\ \text{October 13} & \text{Sale} & \text{3} & \text{ } & \text{ }\\ \text{October 20} & \text{Purchase} & \text{4} & \text{920} & \text{3,680}\\ \text{October 28} & \text{Sale} & \text{7} & \text{ } & \text{ }\\ \text{October 30} & \text{Purchase} & \text{7} & \text{930} & \underline{6,510}\\ \text{ } & \text{ } & \text{ } & \text{ } & \underline{\underline{\$ 20,140}}\\ \end{matrix}

  1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at October 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31.
accounting

Tony and Suzie graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 20,000 shares of common stock for 1each.Eachshareofstockrepresentsaunitofownership.TonyandSuziewillactascopresidentsofthecompany.ThefollowingbusinessactivitiesoccurduringJulyforGreatAdventures.1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures.

July 1Sell $10,000 of common stock to Suzie.  1Sell $10,000 of common stock to Tony.  1Purchase a one-year insurance policy for $4,800 ($400 per month) to cover  injuries to participants during outdoor clinics. 2Pay legal fees of $1,500 associated with incorporation. 4Purchase office supplies of $1,800 on account. 7Pay for advertising of $300 to a local newspaper for an upcoming mountain biking  clinic to be held on July 15. Attendees will be charged $50 the day of the clinic. 8Purchase 10 mountain bikes, paying $12,000 cash. 15On the day of the clinic, Great Adventures receives cash of $2,000 from  40 bikers. Tony conducts the mountain biking clinic. 22Because of the success of the first mountain biking clinic, Tony holds another   mountain biking clinic and the company receives $2,300. 24Pay for advertising of $700 to a local radio station for a kayaking clinic to be held  on August 10. Attendees can pay $100 in advance or $150 on the day of the clinic. 30Great Adventures receives cash of $4,000 in advance from 40 kayakers for the upcoming kayak clinic.\begin{matrix} \text{July } & \text{1} & \text{Sell \$10,000 of common stock to Suzie.} & \text{ }\\ \text{ } & \text{1} & \text{Sell \$10,000 of common stock to Tony.} & \text{ }\\ \text{ } & \text{1} & \text{Purchase a one-year insurance policy for \$4,800 (\$400 per month) to cover}\\ \text{ } & \text{ } & \text{injuries to participants during outdoor clinics.}\\ \text{ } & \text{2} & \text{Pay legal fees of \$1,500 associated with incorporation.}\\ \text{ } & \text{4} & \text{Purchase office supplies of \$1,800 on account.}\\ \text{ } & \text{7} & \text{Pay for advertising of \$300 to a local newspaper for an upcoming mountain biking}\\ \text{ } & \text{ } & \text{clinic to be held on July 15. Attendees will be charged \$50 the day of the clinic.}\\ \text{ } & \text{8} & \text{Purchase 10 mountain bikes, paying \$12,000 cash.}\\ \text{ } & \text{15} & \text{On the day of the clinic, Great Adventures receives cash of \$2,000 from}\\ \text{ } & \text{ } & \text{40 bikers. Tony conducts the mountain biking clinic.}\\ \text{ } & \text{22} & \text{Because of the success of the first mountain biking clinic, Tony holds another }\\ \text{ } & \text{ } & \text{mountain biking clinic and the company receives \$2,300.}\\ \text{ } & \text{24} & \text{Pay for advertising of \$700 to a local radio station for a kayaking clinic to be held}\\ \text{ } & \text{ } & \text{on August 10. Attendees can pay \$100 in advance or \$150 on the day of the clinic.}\\ \text{ } & \text{30} & \text{Great Adventures receives cash of \$4,000 in advance from 40 kayakers for the}\\ & \text{ } & \text{upcoming kayak clinic.}\\ \end{matrix}

$ 1. Record each transaction in July for Great Adventures. 2. Post each transaction to T-accounts. 3. Prepare a trial balance.