Name the Accounts Exercise
(Plus Journals)

Before you begin: For purposes of exams and testing it's important to make sure you not only answer accounting questions correctly but can complete them at the correct speed. So please time yourself for this exercise.



Difficulty Rating:
Beginner

Time limit:
5 minutes



Question:

Transactions Which accounts are affected in each of the following transactions?

1. Invested cash in the business - $4,000
2. Bought equipment for cash - $500
3. Bought equipment on account - $800
4. Paid cash on account for equipment purchased in transaction - $300
5. Withdrew cash for personal use - $700


Solution:

Account Names:

1. Bank/Cash (increases by $4,000) and Capital (owner's equity increases by $4,000)

2.
Equipment (increases by $500) and Bank/Cash (decreases by $500)

3.
Equipment (increases by $800) and Accounts Payable (increases by $800)

4.
Bank/Cash (decreases by $300) and Accounts Payable (decreases by $300)

5.
Drawings (owner's equity decreases by $700) and Bank/Cash (decreases by $700)

Journal Entries:

Note that journal entries were not asked for in this question but it would be good practice if you attempted this too.

1. Dr Bank...............$4,000
Cr Capital............................$4,000

2. Dr Equipment...............$500
Cr Bank........................................$500

3. Dr Equipment.........................$800
Cr Accounts Payable............................$800

4. Dr Accounts Payable...............$300
Cr Bank..................................................$300

5. Dr Drawings...............$700
Cr Bank...................................$700



Hope you enjoyed our Name the Accounts Exercise!

Let us know what you thought by leaving a comment below!

Best,
Michael Celender
Accounting Basics for Students


Related Questions & Tutorials:
Click here for more Basic Accounting Questions

Return to the chapter on the Ten Common Basic Accounting Transactions

Comments for Name the Accounts Exercise
(Plus Journals)

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T-ACCOUNT LABELS
by: Anonymous

1. cash is debited/increased by $4,000
Owner's equity is credited/increased by $4,000

2. cash is credited/decrease by $500.00
equipment debited/increase by $500.00

3. A/P is credited/increased by $800.00
equitment debited/decreased by $800.00

4. cash is credited/decreased by $300.00
A/P is debited/decreased by $00.00

5. cash is credited/decreased by $700.00
owner's drawing/equity is debited/decreased
by $700.00

answers to the T-Accounts questions
by: Anonymous

please give the answers to the T-Accounts questions

Click here to add your own comments

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