Question

Accounting Cycle Tutorial Step 2: Analyze and Journalize Transactions >000 > Analyze the Transactions Activity 2.b - Analyze the Transactions Review the transactions and determine the accounts, the account types (use assets, liabilities, common stock, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. List accounts in order they would be in the journal entry. Refer to the Chart of Accounts for account titles. Purchase of building with note. Account 1 Account Type Increase/Decrease Debit/Credit Account 02 Account Type Increase/Decrease Debit/Credit Collected cash for future services Account an Account Type Increase/Decrease Debit/Credit Account Type increase/Decrease Debit/Credit Earned 9.00 by establishing a note receivable with a face value of $120.000. This note has no stated Interest, Enter the asset accounts first.

Answer 1

Answer-1-Purchase of Building with Note:-

Account #1	Account Type	Increase/ Decrease	Debit / Credit
Building	Asset	Increase	Debit
Account #2	Account Type	Increase/ Decrease	Debit / Credit
Notes Payable	Liabilities	Increase	Credit

2-Collected cash for future services

Account #1	Account Type	Increase/ Decrease	Debit / Credit
Cash	Assets	Increase	Debit
Account #2	Account Type	Increase/ Decrease	Debit / Credit
Unearned Revenue	Liabilities	Increase	Credit

3-Earned $90,000 by establishing a note receivable with a face value of $120,000.This note has no stated interest.

Account #1	Account Type	Increase/ Decrease	Debit / Credit
Notes Receivable	Assets	Increase	Debit
Account #2	Account Type	Increase/ Decrease	Debit / Credit
Discount on Notes Receivable	Assets	Increase	Credit
Account #3	Account Type	Increase/ Decrease	Debit / Credit
Sales Revenue	Revenue	Increase	Credit

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