Problems 1, 2, and 4. Set up each item somewhat in the following manner:
- Paid $9,780 cash on account
- (Dairymen’s League paid to Union Car Line Company).
- Debit:
- Increase of Assets (Cash, $9,780).
- Credit: Decrease of Assets
- (Accounts Receivable, Dairymen’s League $9,780).
XII
1. (a) Analyze the following transactions and name the debit and credit elements of each to show:
1. The increase or decrease of assets, liabilities, and proprietorship.
2. The account titles under each of the general groups. [Refer to (b) for account titles to be used for this.]
- Paid, March 1, repairs on auto truck $62.50; by check, rent $100.
- March 4, $18 for office supplies; advertising circulars $128;
- postage $25; telephone $18.50.
- March 8, interest on borrowed money $12; new sign on door $22.
- March 15, received interest on Liberty bonds $21.25.
- March 18, typewriter repairs cost $8; gasoline and oil $57;
- wrapping paper and general supplies $20.
- March 25, advertising $75; electric light $17; insurance $15.
- March 31, salaries of manager $125; office force $100;
- telegrams $12.80; discount on borrowed money $5; coal $50;
- sales salaries $75; traveling expenses $14.
(b) Prepare accounts with:
- 1. Delivery Expense
- 2. Advertising
- 3. Interest Cost
- 4. Interest Income
- 5. General Office Expense
- 6. Postage, Telephone, and Telegraph
- 7. Selling Expense
- 8. Cash
and set up the debits and credits of the transactions therein. All transactionsa re for cash.