1. Prepare entries to record the following transactions:
(a) a $5,000 cash investment made by the owner of a business.
(b) $1,700 in revenue earned on account.
(c) $2,500 of cash received in advance.
(d) $750 of advertising paid in advance.
(e) a $1,950 withdrawal
(f) the collection of $650 in cash on account.
(g) $275 of supplies purchased on account.
(h) $420 of utilities expense owed.
(i) a $215 cash payment made on account.
(j) $700 of revenue earned in cash.
2. Before any adjustments have been recorded, unearned rent has a normal balance of $57. If $18 of rent remains unearned at year end, prepare the the adjusting entry to record rental income earned.
3. On October 1 of the current year, a business prepaid $12 of property tax, in advance, for the next 12 months. As of December 31, it owed but had not yet recorded $6 in wages due in January of the following year. Prepare any adjusting and closing entries you think are needed at year end.
4. What would the normal balance be of a liability account a post closing trial balance? A revenue account? Drawing? Explain.
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