Classification of Accounts: Asset, Liability, Equity, Revenue,

School: Bryant and Stratton College, Buffalo - Course: ACCOUNTING PRINCIPAL 1 110 - Subject: Accounting

Magdalena Feliciano ACCT110 - Accounting Principles I Portfolio Project - Classification Exercise Deadline See Tracking Calendar Directions Question 1: For the attached table, identify the type of account as an asset, liability, equity, revenue or expense account. Then type debit or credit within the increase/decrease columns to signify whether a debit increases the account, or a credit increases the account.The same for the decrease column. (30 points, 1 point per answer) Account NameAccountType IncreaseDecrease 1CashAssetDebitCredit 2Accounts PayableLiabilityCreditDebit 3PrepaidInsurance AssetDebitCredit 4TelephoneExpense EquityCreditDebit 5UnearnedRevenue LiabilityCreditDebit 6Owner CapitalEquityCreditDebit 7Fees EarnedEquityCreditDebit 8OwnerWithdrawal EquityCreditDebit 9EquipmentAssetDebitCredit 10 SuppliesAssetDebitCredit Question 2: In a double entry accounting system, each transaction affects at least two different accounts. For the following transactions identify the two accounts and what type of account is each, asset, liability, equity, revenue, or expense. (40 points, 1 point per answer) 1.On July 1, Salvatore, the owner invested $10,500 cash into the company. Name of Accounts Affected:Type of Account: CashAsset Owners capitalEquity ACCT110 - Portfolio Project - Classification Exercise KEY2 2.On July 2, the company paid $2,000 cash for an insurance policy covering the next 12 months. Name of Accounts Affected:Type of Account: CashAsset Prepaid insuranceAsset 3.On July 5, the company purchased Office Supplies for $500 for cash. Name of Accounts Affected:Type of Account: CashAsset SuppliesAsset 4.On July 7, the company completed services for $10,000 with a $1,000 payment and the rest on account. Name of Accounts Affected:Type of Account: CashAsset Accounts ReceivableAsset RevenueEquity 5.On July 10, the company paid $100 for the telephone bill. Name of Accounts Affected:Type of Account: CashAsset ExpenseEquity 6.On July 15, the company received $4,000 for services to be performed at a later date. Name of Accounts Affected:Type of Account: CashAsset Unearned RevenueLiability 7.On July 22, the owner withdrew $50 cash.