Chapter 3, Problem 1CP

COACHED PROBLEMS

Recording Nonquantitative Journal Entries

The following list includes a series of accounts for B-ball Corporation, which has been operating for three years. These accounts are listed alphabetically and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. If no journal entry is needed, write none after the transaction. The first transaction is used as an example.

TIP: In transaction (h), remember what the expense recognition principle says.

TIP: Think of transaction (j) as two transactions: (1) incur expenses and liability and (2) pay part of the liability.