Innovative Designs, owned by Bartolome Pozon, has been operating for two years. Below is a series of transactions. For each transaction, indicate the accounts that should be debited and credited. If no journal entry is required, write "n/a" in the columns. Use the following account titles: Cash; Accounts Receivable; Supplies; Prepaid Expenses; Equipment; Patents; Accounts Payable; Notes Payable; Salaries Payable; Pozon, Capital; Pozon, Withdrawals; Service Revenues and Operating Expenses.

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Chapter1: Financial Statements And Business Decisions
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IM-MODULE-3-Account X +
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IMIƆ - EXercises I
Debits and Credits
Innovative Designs, owned by Bartolome Pozon, has been operating for two years.
Below is a series of transactions. For each transaction, indicate the accounts that should
be debited and credited. If no journal entry is required, write "n/a" in the columns. Use
the following account titles: Cash; Accounts Receivable; Supplies; Prepaid Expenses;
Equipment; Patents; Accounts Payable; Notes Payable; Salaries Payable; Pozon, Capital;
Pozon, Withdrawals; Service Revenues and Operating Expenses.
Transactions
Debit
Credit
Purchased equipment for use in the business; paid one-
third cash and gave a note payable for the balance.
b. Paid cash for salaries.
C. Collected cash for services performed this period.
Collected cash for services performed last period.
Performed services this period on credit.
f. Paid operating expenses incurred this period.
Paid cash for operating expenses incurred last period.
a.
d.
e.
B-
h. Incurred operating expenses this period to be paid next
period.
1. Purchased supplies for inventory to be used later; paid
cash.
j. Used some of the supplies from inventory for
operations.
k. Purchased a patent (an intangible): paid cash.
. Made a payment on the equipment note in (a); the
payment was part principal and part interest expense.
m. Collected cash on accounts receivable for services
previously performed.
Paid cash on accounts payable for expenses previously
incurred.
o. On the last day of current period, paid cash for an
insurance policy covering the next twelve months.
n.
9:30 AM
w
03/12/2021
Transcribed Image Text:IM-MODULE-3-Account X + -> file:///C:/Users/user/Documents/QUIJANO,%20JAN%20CLEO%20C/ACCOUNTING/IM-MODULE-3-Accounting-Fundamentals-P1-M.Chan%20(1).pdf ... IMIƆ - EXercises I Debits and Credits Innovative Designs, owned by Bartolome Pozon, has been operating for two years. Below is a series of transactions. For each transaction, indicate the accounts that should be debited and credited. If no journal entry is required, write "n/a" in the columns. Use the following account titles: Cash; Accounts Receivable; Supplies; Prepaid Expenses; Equipment; Patents; Accounts Payable; Notes Payable; Salaries Payable; Pozon, Capital; Pozon, Withdrawals; Service Revenues and Operating Expenses. Transactions Debit Credit Purchased equipment for use in the business; paid one- third cash and gave a note payable for the balance. b. Paid cash for salaries. C. Collected cash for services performed this period. Collected cash for services performed last period. Performed services this period on credit. f. Paid operating expenses incurred this period. Paid cash for operating expenses incurred last period. a. d. e. B- h. Incurred operating expenses this period to be paid next period. 1. Purchased supplies for inventory to be used later; paid cash. j. Used some of the supplies from inventory for operations. k. Purchased a patent (an intangible): paid cash. . Made a payment on the equipment note in (a); the payment was part principal and part interest expense. m. Collected cash on accounts receivable for services previously performed. Paid cash on accounts payable for expenses previously incurred. o. On the last day of current period, paid cash for an insurance policy covering the next twelve months. n. 9:30 AM w 03/12/2021
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