ACCT1211financial Accounting. Question 1
A.Determine if a debit, credit, or nil entry would be made to the balance sheet:
1.Increase Accounts Receivable
2.Increase Accounts Payable
3.Decrease Mortgage Payable
4.Increase Office Supplies
5.Decrease Owner’s Capital
7.Decrease Office Furniture
8.Increase Owner’s Withdrawals
9.Decrease Unearned Revenue
B.Determine if the normal balance is a debit or a credit:
John Tree started a business, Tree Trimming, which is a proprietorship, on June 01, 2018. The following transactions occurred in June 2018:
June 5: Tree Trimming provided tree trimming services for a client, on account, for $ 3,000.
June 9: John Tree withdrew $ 500 from his personal bank account and used the funds to purchase a television for his mother.
June 15: Tree Trimming received cash for the June 5 work that it had performed.
June 22: Tree Trimming paid $ 250 regarding an ad that it placed in the local newspaper.
June 24: Tree Trimming received $ 10,000 cash for tree trimming services it performed that day.
Journalize the above transactions affecting Tree Trimming. Provide a written explanation for each journal entry recorded or not recorded.