2-2 Application Problem: Analyzing transactions into debit and credit parts Loa Helfrey Marketing Services uses the following accounts. Sawyer Helfrey, Capital Sawyer Helfrey, Drawing Sales Advertising Expense Rent Expense Cash Supplies Prepaid Insurance Accounts Recelvable-Neco Valenza Accounts Payable-All Star Company Transactions: June 1. Received cash from owner as an investment, $10,000.00. 2. Paid cash for Insurance, $4,000.00. 4. Bought supplies on account from All Star Company, $6,000.00. 5. Paid cash for supplies, $1,000.00. 8. Paid cash on account to All Star Company, $4,000.00. Instructions: 1. Prepare two T accounts for each transaction. On each T account, write the account title of one of the accounts affected by the transaction. Use the forms in your Working Papers. 2. Write the debit or credit amount in each T account to show how the transaction affected that account. Taccounts for the first transaction are given as an example.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Application Problem: Analyzing transactions into debit and credit parts Log
Helfrey Marketing Services uses the following accounts.
Sawyer Helfrey, Capiltal
Sawyer Helfrey, Drawing
Sales
Cash
Supplies
Prepaid Insurance
Accounts Recelvable-Neco Valenza
Accounts Payable-All Star Company
Advertising Expense
Rent Expense
Transactions:
June 1. Received cash from owner as an investment, $10,000.00.
2. Paid cash for Insurance, $4,000.00.
4. Bought supplies on account from All Star Company, $6,000.00.
5. Paid cash for supplies, $1,000.00.
8. Paid cash on account to All Star Company, $4,000.00.
Instructions:
1. Prepare two Taccounts for each transaction. On each T account, write the account title of one of the accounts
affected by the transaction. Use the forms in your Working Papers.
2. Write the debit or credit amount in each Taccount to show how the transaction affected that account.
Taccounts for the first transaction are given as an example.
Transcribed Image Text:Application Problem: Analyzing transactions into debit and credit parts Log Helfrey Marketing Services uses the following accounts. Sawyer Helfrey, Capiltal Sawyer Helfrey, Drawing Sales Cash Supplies Prepaid Insurance Accounts Recelvable-Neco Valenza Accounts Payable-All Star Company Advertising Expense Rent Expense Transactions: June 1. Received cash from owner as an investment, $10,000.00. 2. Paid cash for Insurance, $4,000.00. 4. Bought supplies on account from All Star Company, $6,000.00. 5. Paid cash for supplies, $1,000.00. 8. Paid cash on account to All Star Company, $4,000.00. Instructions: 1. Prepare two Taccounts for each transaction. On each T account, write the account title of one of the accounts affected by the transaction. Use the forms in your Working Papers. 2. Write the debit or credit amount in each Taccount to show how the transaction affected that account. Taccounts for the first transaction are given as an example.
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