Reference no: EM132635259

Question 1 - State the normal balance of the account below:

Accounts Debit or Credit

1. Service Revenue __________________

2. Rent Expense __________________

3. Accounts Receivable __________________

4. Accounts Payable __________________

5. Retained Earnings __________________

6. Supplies __________________

7. Insurance Expense __________________

8. Dividends __________________

9. Equipment __________________

10. Notes Payable __________________

Question 2 - Keep a journal for the business transactions below in a general journal.

1. The company issued common stock in exchange for £ 25,000 in cash.

2. Purchase 400 supplies on account.

3. Purchased equipment for £ 10,000, paid £ 3,000 in cash and signed a 30-day, £ 7,000, note payable.

4. Send invoices to clients totaling 4,000 for the work already done.

5. Paid 700 cash for 1 month office rent.

6. Paid 200 cash for supplies purchased in transaction 2.

7. Received bill of £ 600 in advertising costs.

8. Paid 2,200 cash in wages.

9. The company paid a dividend of 1,200.

10. Received a check for £ 3,000 from the client in payment for billing in transactions 4.