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.

Journal entries are the initial recording of all the monetary business transactions in a systematical order. They are recorded in the chronological order as per the occurrence of the event. There are various types of journal entries such as: adjusting entries, closing entries, and regular entries. Cash Basis Modified Cash Basis Accrual Basis 1 No Entry No Entry No Entry No Entry AccountsReceivables Service Revenue 2 No Entry No Entry No Entry No Entry Supplies Expnse Supplies 3 Insurance Expense Cash Insurance Expense Cash Prepaid Insurances Cash 4 No Entry No Entry No Entry No Entry Utility Expense Utility Payables 5 No Entry No Entry Depreciation Expense Accumulated Depreciation Depreciaion Expense Accumulated Depreciation 6 No Entry No Entry Equipment Account Payables Equipment Account payable 7 Wages Expenses Cash Wages Expense cash Wage Expense Cash 8 Equipment Expense Cash Accounts Payables Cash Accounts Paysbles Cash 9 Cash Service Revnue Cash Service Revenue Cash Service Revenue 10 Equipment Expense Cash Equipments Cash Equipment Cash

Business

Accounting

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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