Question

please answer the following questions.

ACCT-212 Assignment #1 1. Write the Accounting Equation and list 3 examples for each type. Answer True or False for the following: 2. The normal balance for an asset account is the debit side. The normal balance for a liability account is the debit side. Common Stock is not a type of Stockholders' Equity. Revenues increase on the debit side. When recording a journal entry you should begin with the debit account. 3. Record the transactions below as journal entries: Office Supplies were purchased on account for $400. Received cash for services rendered that amount to $600. Paid total wages of $350 from company's bank account.

Answer 1

Sl. No.	Particulars
1	Accouting equation is:	Example
	Assets = Liabilities + Equity.	If liability is $500 and equity is $200, then Assets = (500+200)
	Liabilities = Assets – Equity.	If total assets is $1,000 and equity is $300, then liability is $700(1,000-300).
	Equity = Assets – Liabilities.	If total assets is $1,500 and liability is $400, then equity is $1,100(1,500-400)
2	The normal balance for an asset account is the debit side.	True. As per double entry rules, normal balances of assets are always debit and normal balances of liability and equity are always credit.
	The normal balance for an liability account is the debit side.	False. As per double entry rules, normal balances of assets are always debit and normal balances of liability and equity are always credit.
	Common stock is not a type of stockholders' equity	False. Common stock is a type of stockholders' equity only.
	Revenue increase on the debit side.	False, Revenue is an income, and for increase in income Credit is not. Not debit.
	When recording a journal entry you should start with debit account.	True, While passing journal entries we write first debit accounts then credit account.
3	Journal Entries
	Office supplies A/c Dr.                                          $400
	Account payable                                                     $400
	(office supplies purchased on account)
	Cash A/c    Dr.                                                           $600
	Sales of services(revenue)                                   $600
	(being cash sales made)
	Wages A/c Dr.                                                             $350
	Cash A/c                                                                       $350
	(being wages paid in cash)

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