Performed services on account. Supplies are partly used. Purchased one-year insurance policy for cash. Received bill for electricity. Depreciation on equipment. Purchased equipment on account. Paid cash for wages. Paid for equipment purchased on account. Performed services for cash.
Performed services on account. Supplies are partly used. Purchased one-year insurance policy for cash. Received bill for electricity. Depreciation on equipment. Purchased equipment on account. Paid cash for wages. Paid for equipment purchased on account. Performed services for cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:In the columns below, insert the entry that would be made for each transaction under each accounting basis, using appropriate debit and credit account titles.
1. Performed services on account.
2. Supplies are partly used.
3. Purchased one-year insurance policy for cash.
4. Received bill for electricity.
5. Depreciation on equipment.
6. Purchased equipment on account.
7. Paid cash for wages.
8. Paid for equipment purchased on account.
9. Performed services for cash.
10. Paid cash for new equipment.
**Cash Basis:**
| Debit | Credit |
|----------------------|----------------------|
| 1. Accounts Receivable| |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. | |
| 7. | |
**Modified Cash Basis:**
| Debit | Credit |
|---------|---------|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
**Accrual Basis:**
| Debit | Credit |
|---------|---------|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Explanation: Insert the appropriate debit and credit entries in each row for each accounting basis as transactions occur. The "Accounts Receivable" is already indicated in the Cash Basis under Debit for the first transaction.
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